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The article concerns the relationship between the monarchy and local ruling elites in late medieval Spain. The building of a centralized power in that period has been studied as the victory of the Crown over other power institutions, such as nobility or self-governing towns. Nevertheless the author problematizes this issue through the analysis of the measures carried out by the Catholic Monarchs over the Marquesado de Villena, an extensive Castilian lordship incorporated within the realm under their rule. We see how the monarchy dealt with the local ruling elites in order to impose royal authority: their negotiations reveal the establishment of absolute royal power, respecting, however, previously existing power institutions. This article challenges the traditional concept of authoritarian monarchy.