Political theory advocates the centrality of trust for democratic legitimacy and stability. It holds that democracy works best if citizens trust governance institutions. From this standpoint, we argue that the local political arena is conducive to nurturing trust, for onward projection onto national institutions. Using a mixed-method approach to a Ghana case study that combines in-depth interviews with regression and a propensity score matching technique, we demonstrate the centrality of proximity as a trust-building mechanism. We show that proximity to elected officials and local institutions facilitates inclusion and participation – and brings the otherwise distant state closer to the local population. Positive experiences with municipal structures – the most proximate of all state institutions – help build positive evaluations of the national government. Processes that deepen participatory platforms and inclusive decision-making in local arenas will furnish governments with a legitimacy and democracy dividend.