In order to develop effective policies to improve conditions for people working in the informal sector of the economy, it is crucial to understand how that sector arises, operates, and relates to the state. This article analyses the informal sector in Ghana from this perspective, drawing insight from a wide range of sources such as radio and newspaper accounts to overcome the dearth of official information on the subject. The analysis shows the limits of various approaches that have aimed at revamping the informal sector. It puts the case for a more comprehensive approach to the informal sector than has been evident in previous policies toward the urban economy.