Beginning in the late nineteenth century a promising ranching sector developed on the Mato Grosso frontier with Paraguay. The most lucrative markets for cattle products were in neighboring Paraguay, Uruguay, and in the southeast of Brazil. For the most part markets were distant from the region of production, while fiscal revenues were always limited, hence the state attempted to impose its regulations and taxes as it could. Residents found their incomes were constrained at the best of times, and any “outside” impositions were simply obstacles to the prosperity of their communities and businesses. The result was that like similar regions across the globe cattle and cattle product smuggling became normal. The profits were significant enough that even local government officials were involved. The result was a long-running “battle” between the state and local producers to tap the potential promised by ranching that simultaneously promoted and inhibited the development of the region. This article explores these contradictory aspects of ranching settlement along the Brazil-Paraguay border.