Why do administratively competent states sometimes leave substantial swathes of their territory ungoverned? We explore this question in the context of the Frontier Crimes Regulation (FCR) in Pakistan, a British Colonial law only abrogated in 2018, that left legal decisions up to local customary councils. This contrasts with areas where the British and Pakistani state built modern political and bureaucratic institutions. Using primary legal documents we create a dataset of when and where FCR applied between 1901 and 2012. Exploiting spatial variation in the Green Revolution’s impact in the 1960s, we show that governance was preferentially extended to places where the state stood to benefit the most in terms of land revenue. Our results show that technological changes which shift the returns to control influence where states choose to govern.