Since the implementation of the Organic Law of Villagers' Committees in the late 1980s, village election has emerged as a prominent instrument for advancing rural democracy in China. As the wave of democratisation spreads, it instills in villagers an awareness of their rights to democratic elections, democratic supervision, democratic decision making and democratic management. Few women, however, have been elected to villagers committees or assume leadership roles. Based on a project funded by the United Nations Development Programme's (UNDP) Funds for Women, this paper uncovers the social, cultural, economic and institutional obstacles that stand in the way of improving women's representation and participation. The current study echoes the findings of scholars in regard to the limited empowerment of women in rural governance despite electoral reforms and elections. State intervention to address women's role in rural politics has failed to take into account various constraining factors on participation within the context of rural society itself. In the words of institutional economics, when the transaction costs for women's participation are high, women abstain not from voting but from playing a more active role in politics. This is particularly so when the costs of participation based on rational, calculable economic interests far outweigh the benefits of participation, given the lack of organisational support and social networks that empower women in terms of their skills, abilities and self-worth.