Exploring how the policy of protection of indigenous people works on the ground in Pasighat, a town in Arunachal Pradesh, this paper brings out the interlinkages between urban politics and indigeneity as an entitlement regime. Once boundaries are operationalised on the basis of territorial belonging, politics revolves around who is from a particular place and who is not. This has created opportunities for accumulation for the indigenous people through rents. The state simultaneously installs and destabilises this politics of indigeneity. The paper shows how the state and capital are implicated in the structures of enfranchisement that have historically shaped the town.