The Peruvian government is attempting to implement a formalization plan to deal with the chaotic expansion of small-scale mining activities in the Amazon. However, this plan has been contested, delayed and halted by local miners. Why exactly has it been so hard for the government to enforce a formalization plan in Madre de Dios? This article aims to answer this question by analysing both government efforts to establish control over the region and the challenges it faces in enforcing its formalization plan. It is argued that current resistance to and conflict over the formalization process in Madre de Dios reveals a state governance problem due to the region having been historically governed as a zone for exploitation rather than for social and economic development. Similarly, the analysis highlights the absence of major corporations through which the state can establish a basis for governance, as in other parts of the country.