The growth of state capacity with respect to African people in South Africa's cities, while an ambition of many local and central state managers, was secured only in the face of conflicts within the state and between the state and the people. This paper examines some of the specific social processes which shaped the segregated form of African settlement and administration in Port Elizabeth between 1923–35. The aim is to interpret how the unique configuration of social and economic conditions in Port Elizabeth both fed into and depended upon an as yet imperfectly implemented strategy for the government and control of the city's African populace. Issues of concern include the nature of the administration in the New Brighton ‘Location’, the influence of liberal politics on ‘Location’ strategy and the impact of the local council's efforts at place entrepreneurialism on residential development and urban government.