This study in the Santa Marta favela following installation of the Peacekeeping Police Unit (UPP) aimed to analyze the markets dynamics and the effects on residents lives. The study involved direct observations and interviews with residents and individuals involved in business activities. Data were grouped according to market expansion through new companies, business diversification, and the formal incorporation of services. The discourses on social responsibility and increased capacities were also analyzed. The data suggest that the states presence was a prerequisite for market expansion in the territory, even while the use of public spaces by residents and local businesses are in decline. The increasing cost of living in the area generates insecurity due to the threat of white gentrification. The purported social inclusion through the market clashes with the intended expansion of citizenship, with the state failing to provide minimum safeguards.