Establishment of the courts represented almost the first granting by a Government in Papua New Guinea of formal judicial power to villagers. The courts are village courts in the sense that court officials are villagers chosen by village people. The courts have wide jurisdiction and generally use customary law and procedures. However, they represent a greater State involvement and control and a greater degree of authoritarianism by court officials. As a result, little scope exists for community involvement and party consensus in dispute settlement. Thus, the Village Courts Act provides new means for social control in the rural areas rather than the mere strengthening of existing dispute settlement mechanisms. The courts so far appear to have succeeded fairly well in preserving law and order, but their hold on the population is fragile and they do not operate effectively in all parts of the country. The village people have generally accepted the courts, mainly because they have proved vastly superior to the previous official system of local courts based in towns and patrol posts. However, they see the courts as part of a line of governmental and semigovernmental instruments designed to control the village. The new elites in the villages have much to gain from the courts, although some members of the elite have been brought before the courts. A few data tables are included.