Could imperial rule affect state institutions at the national, regional, and local level differently? No systematic theory to answer this question exists, which is surprising given the importance that is attributed to foreign rule for political-administrative organization around the world. The effectiveness of imperial rule may differ along the administrative hierarchy because empires are often subject to financial constraints, limits on organizational capabilities, and informational asymmetries. Therefore, a commonly used approach—aggregation at the national level—may yield erroneous findings about colonial legacies by ignoring vital nuances. To address this gap, I develop a novel theory of imperial pervasiveness and test it through a number of statistical analyses. Leveraging an original dataset of citizen perceptions of state institutions in Romania, this study reveals vastly different long-term effects of historical Habsburg rule at the regional and local levels. The results indicate that we need to rethink the study of colonial origins.