In this paper we argue that there is a ‘missing middle’ between policies to ameliorate poverty of those in need and the experience of poverty. Drawing on interviews with respondent poor(er) households in Brunei's ‘water village’ of Kampong Ayer and with officials and local leaders, the paper details a complex and well‐funded system of support for those in need. It then shows how this impressive architecture of welfare does not always meet the needs of those it seeks to support. Through rendering poverty technical, policies implicitly ascribe persistent destitution as arising from the failure of the poor to take advantage of the opportunities made available to them. The paper suggests that this gap could be bridged by giving non‐governmental organizations (NGOs), social enterprises and informal businesses a greater role in the delivery of support. Kampong Ayer's experience has its parallels in other places and situations: the tendency to bureaucratize poverty and its amelioration; the desire to simplify poverty but complicate programmes for poverty eradication; and the expectation that the onus for adaptation should be on—and with—the poor. When the poor fail to adapt and to respond in the manner desired, they are blamed for their enduring poverty.