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The big-fish-little-pond effect (BFLPE) has been widely demonstrated (Marsh & Hau, 2003) in that for students with equal academic competence, those studying in schools with higher average ability have lower self-concept. The present study examined this BFLPE effect in Chinese villages (and small communities) -- the fundamental organizational units for residents. We postulated that those living in villages with better average academic ability would have lower self-concept. Specifically, data from 729 families sampled from 34 villages in a representative family survey in mainland China were analyzed. Hierarchical regression analyses did not reveal any BFLPE. Students from richer families and smaller villages, however, had higher self-concept. This was explained in terms of the sociocultural context of Chinese villages and communities.