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Purpose

The principal aim of this paper is to bring into analytical focus the institutional context of the escalation in cross‐border pollution in the Hong Kong/Pearl River Delta region.

Design/methodology/approach

The interplay between economic and ecological forces is highlighted against the backdrop of coordination failures in a loosely structured organizational setting.

Findings

It is apparent that powerful bottom‐up forces of economic integration are overwhelming the embryonic machinery hesitantly erected to minimize their adverse effects.

Practical implications

The heavily decentralized model relied upon to manage complex relationships within the Pearl River Delta region needs to be reassessed, with lessons drawn from other parts of the world, notably Europe, which is also confronting friction between the centre and periphery.

Originality/value

The underlying socio‐physical dynamics, fragile organizational façade and crucial policy choices are outlined in a systematic fashion, with intricate linkages carefully pinpointed.

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