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Since at least the Enlightenment, scholars have linked urbanization to state formation in the evolution of complex societies. We challenge this assertion, suggesting that the cooperative units that came together in the earliest cities were premised on limiting outside domination and thus usually acted to impede efforts to create more centralized structures of control. Although cities often became the capitals of states, state formation was quicker and more effective where environments kept people more dispersed. Data from the Andes and Polynesia are used to support this argument. In the Lake Titicaca Basin, household- and lineage-based groups living in the city of Tiahuanaco structured urban dynamics without the state for the settlement's first 300 years, while similarly organized Hawaiian groups that were isolated in farmsteads were quickly realigned into a state structure. By decoupling urbanization from state formation, we can better understand the interactions that created the world's first cities. [ABSTRACT FROM AUTHOR]