Deregulation introduced by the 1996 Telecommunications Act brought unprecedented change to broadcasting, including the consolidation of independent radio stations within mega-networks. Acting in response to decreasing diversity in station ownership, the Federal Communications Commission (FCC) launched low-power FM (LPFM) radio in 2000. In the FCC's vision, thousands of community-based radio stations would serve local needs and increase diversity in programming and station ownership. However, despite its potential for serving urban minorities and improving connections between stations and local communities, fewer than 1,200 LPFM radio stations were established between February 2000 and July 2007. In this article we examine the distribution of LPFM stations, efforts by full-power broadcasters to limit LPFM expansion, and groups that have benefited most from the LPFM initiative. Our findings reveal that few LPFM stations have been established in densely populated urban areas that are subject to spectrum crowding. In lieu of helping inner-city minorities, the main beneficiaries of LPFM have been white Americans living in rural areas. Although civic and community organizations have been successful in establishing stations, the greatest number of LPFM stations are operated by religious organizations. This study can be viewed within a broader framework involving diverging interests of national corporations and small communities.