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This article analyses the background to and the content of the Peruvian prior consultation law – the only one enacted in Latin America to date – and its regulating decree. In contrast to the widespread conception that prior consultation is a means for preventing and resolving conflict, it argues that this new legislation will not help to transform conflicts as long as the normative framework itself is contested and the preconditions for participatory governance are not in place. Establishing these preconditions would result in state institutions capable of justly balancing the diverse interests at stake; measures that reduce power asymmetries within consultations; and joint decision-making processes with binding agreements. [ABSTRACT FROM PUBLISHER]