In Bolivia, urbanisation increasingly takes place in peri-urban settings situated outside the boundaries of cities. Unlike previous research that considers peri-urban developments such as rural-to-urban land use transitions to be characterised by state absence and little regulation and planning, this article demonstrates that such developments occur precisely because of the presence of particular multi-scalar governance configurations. Drawing on case study material from peri-urban La Paz, the article demonstrates how legislative reforms by Bolivia’s national government on decentralisation and municipal delineation, which failed to establish clear jurisdictional boundaries, create a situation of hyperregulation whereby multiple local authorities claim political control over the same territory by deploying distinct and at times conflicting, legal and planning frameworks. While hyperregulation enables a loose coalition of elite actors, including government authorities, resident leaders of peri-urban settlements and private sector representatives, to advance specific political and socio-economic interests, it puts ordinary residents in a situation of permanent uncertainty. The article contributes to and further nuances conceptual debates on calculated informality which uncover how states deliberately create legally ambiguous systems to facilitate speculative urban developments. Unlike previous studies which highlight that this is mainly achieved through state engineering, and particularly by suspending or violating the law, this article demonstrates that legal ambiguity and irregularity can also be generated through multi-scalar governance configurations that (1) involve a number of elite actors, including state authorities but also private sector and civil society representatives and (2) create a situation in which different regulatory systems co-exist without coordination.