This research explored the characteristics of stone tool production in the heart of the Andean state of Tiwanaku, comparing urban and rural settlements, elite and non-elite. Models of the Tiwanaku state were tested, and comparisons with the contemporaneous Wari state were explored. No evidence of craft specialization was recovered in urban or rural sites. Even though there is an overall continuity in lithic production from Formative (1500 B.C.-400 A.D.) to Middle Horizon (400-1100 A.D.), significant changes occur after 600 A.D. with the exploitation of exotic raw materials. The state controlled the procurement and distribution of obsidian and black basalt, giving preference to urban dwellers, following experiences of earlier altiplano polities (Pukara, Chiripa and Wankarani). At the same time, local groups procured smaller quantities of exotics from other sources, independently from state control. Projectile points were locally manufactured and used in inter-group conflicts.