Foucauldian and neo-Gramscian approaches enjoy considerable influence in research on the mutations of neoliberal governance in cities. However, both are prone to treating coercion as the antithesis of power, leading them to downplay the coercive modalities of neoliberalism. This paper applies the Gramscian theory of the integral state to correct the bias towards non-coercive power. The integral state rejects the power–violence dualism, depicting coercive and non-coercive modalities of power and counter-power as inhering in capitalist political economy. The paper argues that studying neoliberalism from the perspective of the integral state contributes to explaining the intractability of coercion in the governance system and in particular the coercive power of the local state. It concludes by reflecting on the implications of this perspective for political action, arguing for a resolutely critical and conflictual stance.