Many Indigenous nations in the settler state of Canada have two governments: elective band councils and a customary leadership not subject to regular elections. When these groups struggle for authority, outsiders often side with the band councils on the assumption that elections are necessary for a government to be democratic. But this assumption reflects an unwarranted electoral bias. In fact, non-elective customary governments can be more democratic than elected band councils. As we show, customary governments sometimes draw wider participation from Indigenous communities, and they can create responsiveness through non-electoral mechanisms that promote voice and exit. This gives Canada a democratic reason to promote Indigenous democratic innovation through policy and legal reforms that facilitate state recognition of customary governments.