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Increased donor attention to Poverty Reduction Strategy (PRS) processes and to budgetary support have meant reduced funding for Area Development Projects (ADPs). Does this trend risk throwing the baby out with the bathwater? Specifically, this paper argues that PRS processes have a ‘missing middle’ – they envisage greater impact on poverty, and propose changes at policy and strategy level in order to achieve this, but are weak on the practical arrangements for delivering poverty-focused initiatives. Drawing general lessons from a study commissioned by Sida, this paper argues that ADPs have considerable potential to inform PRS and similar processes within this ‘new architecture’ of aid.