Through the administrative reform of 1952, which replaced the five federal states with fourteen districts, the GDR became by far the most centralized state in German history. There has been a remarkable scholarly consensus that following on from this reform state and party were successful in overcoming regional and local identifications. Historians and social scientists discerned a revival of regional identifications from the late 1970s, and explained this as a popular response to the re-evaluation of regional traditions by state and party. This article demonstrates, by contrast, that regional traditions were alive and well throughout the existence of the GDR. Whereas it is true that during the 1960s and the 1970s the state tried to popularize its districts, state and party were always constrained by other, conflicting concerns. Most importantly, the popular demand for leisure and entertainment could be met most easily (and most cheaply) with folklore. Moreover, accentuating regional diversity through local tradition became crucial in a small country in which travel opportunities abroad were extremely restricted. The evolution of local identifications in the GDR points to the limits of a dictatorship. The SED was severely constrained by the divergent interests of different cultural actors, and by the party's acceptance that it needed to respond to popular cultural desires. This article also shows how, over the 40 years of the GDR's existence, distinctive local identities developed and evolved without ever being closely linked to socialism or the state. This insight is indispensable for understanding how the GDR dissolved in 1990, and the persistence of regional specificities and identifications that long outlasted the GDR.