This paper engages existing research on informal institutions in Latin America, by analyzing informal institutions related to public appointments in Chile with particular reference to what is known as the cuoteo. We extend the analysis from the national to the regional and local levels by considering how these informal institutions shape politics. Our research reveals that the nature and function of the cuoteo change according to the level of government at which it operates. Through this analysis we show how the decline of the cuoteo can lead to the erosion of its ability to contribute to the operation of high-quality formal institutions. We combine a review of literature with the analysis of 132 interviews in six regions of Chile.