A ‘politics of recognition’– a process of political reform intended to recognise formally cultural diversity and indigenous peoples’ rights – has developed in Mexico, both at the federal and at the state levels, since the early 1990s. The case of the state of Oaxaca stands out in this respect – the local constitution and nearly a dozen secondary laws were reformed during the 1990s, resulting in the conformation of the most comprehensive multicultural framework in Mexico. In this article, I attempt to explain the emergence and the particular development of Oaxaca's unique politics of recognition. Following an explanatory framework proposed by Donna Lee Van Cott, I conclude that the recognition agenda emerged in Oaxaca as legitimacy and governability was put under strain. In addition, I conclude that the (by Mexican standards) rapid and broad fashion in which it developed can be explained on the bases of the severity of the threats to governability and of the capacity of indigenous actors to influence the decision‐making process and form alliances with key political actors – i.e. the state governors.