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This article examines the ways that endemic drug trafficking has affected local level politics in Rio de Janeiro, Brazil. Drawing on ethnographic analysis of political exchanges in the 1998 national elections in three favelas (shantytowns), I argue that drug trafficking has changed the practice of clientelism. Evidence and analysis in this paper will show that the persistence of drug trafficking in the city has led to the emergence of a two-tiered clientelist system in which politicians make exchanges with traffickers who then, in turn, provide some benefits to favela residents in return for their votes. This results in an arrangement that provides votes to politicians and limited assistance to the poor but does little to build the legitimacy of the political system. [ABSTRACT FROM AUTHOR]