Despite increasing research into populist parties in power, their impact on subnational institutions has been neglected. Taking a novel multilevel perspective, this article inquires into the policy consequences of populist radical right parties (specifically, the FPÖ and Lega) in local government, and the effect of their simultaneous participation in national government. The article shows the expansion of exclusionary policy that follows their concurrent presence in national and local government. The process that leads from national government entry to local policy influence is traced using interview and newspaper data. The article argues that the influence of central parties over these ‘showcase’ localities is rooted in different multilevel governance configurations. These vary cross-nationally according to two factors: the strength of mayors’ linkages with higher government levels in the different institutional settings and, due to the different extent of party nationalization, the strategic value of the municipality to the central party.