This article aims to explain the evolution of urban governance in Spain during the last 40 years as a product of different waves of state rescaling. Historical, political and economic specificities shape the evolution of Spanish urban governance, especially because of the recent process of democratic transition, regional decentralisation and the specific process of de-industrialisation. We distinguish three periods in urban governance trends, from the restoration of democracy in the late 1970s to the current austerity urbanism marked by the economic crisis starting in 2008. For each phase, we highlight the three interrelated factors explaining urban governance: (1) the evolution of the Spanish political economy in the transition from Fordism to post-Fordism; (2) the evolution of the welfare state; and (3) the role of urban social movements.