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Based on in-depth field research in an urban housing demolition and relocation project in J community, Jiangsu province, this article explores the strategies, mindset, and considerations employed by three levels of local authorities (the neighbourhood committee, the district and municipal governments) in resolving conflict with tough nail households. Such investigation highlights the combined discourse surrounding the ‘bargained authoritarianism’ concept and ‘accident avoidance’ principle in the context of ‘maintaining social stability’ (weiwen in Chinese) in China. The conclusion of this article adds to the interpretation of the perpetuating conflicting relationship between central and local in China. This article thus suggests that a shift in approach is required when local authorities establish legal procedures and regulations to manage increasing social conflict in China.