The article begins with a discussion of the chronology of conquest and libe
ration in Peru and reflects on the changing meanings given to the racial ca
tegories of Indian and mestizo (half-caste) in colonial and post-colonial p
eriods. Using popular culture as a lens, the transformations taking place i
n images of race and urban social identities are analysed, using as a case
study a provincial town in the Andean highlands in the course of the twenti
eth century. Through changing forms of street theatre urban groups worked o
ut new identities by weaving together juxtaposing and contesting different
cultural forms. The article explores in derail two manifestations of street
theatre that predominated. These are the Dance of the Inca in the 1900s th
at addressed Indian/white relations, and carnaval where relations between m
estizo and white were played out for much of the twentieth century.