A major argument of this paper is that to enhance the theoretical value of the concept of governance one must focus on how governance networks operate and with what outcomes. To that end, the paper offers a typology of governance-network capacity (GNC). Network capacity is assessed on a continuum from low to high, on the basis of four abilities of public actors: to select non-public collaborators, determine the goals of the network, exercise professional discretion, and recruit new resources. Differences in GNC are discussed in terms of their implications for equality and the degree to which new forms of governing networks create bases for retaining or increasing the inequality between municipalities. The paper presents findings from a study of collaborations between public and non-public actors in 78 governance networks that provide welfare services, operating in six municipalities in Israel.