ABSTRACT This article uses an in‐country comparative approach to investigate the governance of artisanal and small‐scale river sand mining in Bangladesh, focusing particularly on sector heterogeneity, tax farming and power imbalances. It analyses sand governance in two diverse sand‐mining sites in Bangladesh — one mechanized and large, and the other manual and small‐scale. Drawing on in‐depth interviews and focus group discussions, the study reveals that the more mechanized site faced greater regulatory challenges due to its complex web of political and economic relations, contrasting with the simpler governance dynamics of the smaller site. The findings demonstrate that power distribution among stakeholders, including local administrations, leaseholders and miners, significantly shapes governance outcomes. Tax farming, whereby leaseholders but also administrations prioritize short‐term profits over sustainable practices, emerges as a critical issue. This research contributes to ongoing discussions about sand governance, advocating for a nuanced understanding of how the specific characteristics of mining contexts influence regulatory effectiveness. Ultimately, the study calls for a reform of leasing practices and governance models to improve sustainability and inclusivity in sand mining in Bangladesh and beyond. This work not only adds to the literature on artisanal and small‐scale mining but also emphasizes the importance of contextualized governance frameworks in sand resource management.