Neoliberal economic reforms, rather than unleashing market forces, can result in new institutions for market governance. By vacating institutionalized policy domains, neoliberal reforms can trigger two-step reregulation processes, as first, political entrepreneurs launch projects to build support coalitions by reregulating markets, and second, societal groups respond to these projects by mobilizing to influence the terms of reregulation. Depending on the strengths and strategies of politicians and societal groups, reregulation processes result in varied institutions for market governance. The article develops this argument by analyzing how neoliberal reforms in Mexico led to the construction of distinct institutions for market governance across four states (Chiapas, Guerrero, Oaxaca, and Puebla). The findings from Mexico highlight the importance of moving beyond the questions of why developing countries choose neoliberal policies and how they implement them. Students of the political economy of development should shift their attention instead to understanding the kinds of new institutions that replace those destroyed or displaced by neoliberal reforms.