Lanzarote is the most eastern island of the Canary archipelago (Spain). An important touristic resort, it was a pioneer territory in the fight against land speculation and was distinguished as a UNESCO biosphere reserve in 1993. Despite this, recent police and court investigations have shown the existence of illegalities and corruption in the granting of building licenses in two of the most touristic municipalities, Yaiza and Teguise. The article examines the opportunities for urban corruption and the deterrents in place at the local level in Lanzarote between 1998 and 2006. It shows that corruption derived not only from an inadequate formal incentive structure, but also from the prevalence of certain expectations contrary to the common good and from the absence of “principled principals” willing to ensure that agents acting on their behalf did not engage in corruption.