jats:p Gentrification and territorial stigma are understood to be closely linked, yet the workings of the governance networks which underlay this relationship have seldom been explored in depth. This paper seeks to develop understandings of this relationship by showing how the interactions which occur in decision-making processes at the local level culminate in particular strategies for regeneration. It draws on interviews and document analysis to map out and examine networks of governance in Middlehaven, a territorially stigmatised area of Middlesbrough, UK, which has been targeted for regeneration, and indicates the methodology used for tracing the emergence of regeneration strategies in order to reveal how gentrification emerges as a policy response to territorial stigma. In doing so, this paper highlights the relationship between institutional arrangements, governance networks, and approaches to urban change in the context of a territorially stigmatised space in a post-industrial town, and indicates how neoliberal governance occurs in practice at the local level. By highlighting how particular strategies of gentrification which gain traction are embedded in local governance configurations, the paper challenges policy approaches to territorially stigmatised spaces which frame gentrification as an inevitable outcome. </jats:p>