["Information Systems Journal, Volume 36, Issue 3, Page 457-483, May 2026. ", "\nABSTRACT\nRural information systems initiatives (RISIs) are ICT‐based projects intended to drive institutional change and reduce inequalities in rural communities. However, the extant information systems literature shows that many such initiatives paradoxically aggravate inequalities in other domains, but the literature provides little theoretical explanation of the mechanisms involved. This study addresses this gap from an affordance‐based institutional logics perspective. Specifically, it conceptualizes a RISI as an institution that embodies a dominant institutional logic, which shapes how technology affordances are perceived and enacted. This lens is applied to an interpretive case study of an e‐governance initiative implemented in village municipalities (i.e., village councils) in Nepal aimed at reducing knowledge inequalities in the municipalities. The initiative introduced a self‐assessment logic for evaluating local development work, which amplified existing knowledge and power inequalities over time. The case study surfaced two mechanisms through which RISIs may aggravate inequalities: (1) by impeding logic hybridization and (2) by activating discriminatory logics. These findings contribute to the theoretical understanding of RISIs and provide critical insights into the design and governance of ICT‐based initiatives in rural contexts.\n"]