The state and the political process in general play a role in the labor process. In Musha, three formally constituted bodies are important for village governance. These are the Village Council (VC), the Local Popular Council (LPC) and the Cooperative Board. The real power hierarchy in the village was poorly reflected in the formal institutions. At the apex stood the Umda, by virtue of his family background, personal history, wealth and personality. Planning new streets gave rise to a dispute which illustrates the relationship between formal and informal politics in Musha. People concluded that, since the annual flood had ceased, low-lying areas adjacent to the village could be built on, and the increased population and increased prosperity made opening up new areas for housing desirable. The resolution of disputes in Musha illustrates one key aspect of the political process.