This study examines the adjustment of governance methods in village administration as a means to facilitate local economic progress. From the viewpoint of public administration, there exist two conflicting interests in village governance: state involvement as a collective goal and the self-governing rights of rural communities. Adjustment is viewed as a strategic initiative aimed at harmonizing these two interests through flexible, context-sensitive, and sustainable governance. This research employs a qualitative methodology with three selected locations: Panggungharjo Village (DIY), Waturaka Village (NTT), and Kutuh Village (Bali), chosen for their achievements in aligning leadership, local traditions, and economic advancement. The findings reveal that governance adjustment occurs in five phases: (1) transforming local values like recognition and subsidiarity as the foundation of leadership; (2) enhancing the capacity of local officials through an organization culture based on local traditions; (3) adapting to international governance benchmarks; (4) fostering public confidence through transparent and accountable governance practices; and (5) solidifying a productive village political framework to bolster economic gains for the community. These three villages illustrate that governance that marries cultural principles, traditional structures, and contemporary governmental practices can lead to meaningful institutional innovations in village economic development. This research highlights that governance adjustment is a dynamic and continuous process, reflecting ongoing social, political, and economic transformations. Importantly, effective communication is crucial for sharing ideas, thoughts, opinions, knowledge, and data in a manner that guarantees the message is received and comprehended clearly and purposefully during the adjustment for local economic development.