This article asks how theatre shapes civic space by examining the emergence of racial divides in the city of Grahamstown, South Africa, during the annual National Arts Festival (NAF). I track how decision making by festival organizers has relied on economic research and implicit artistic preferences that have resulted in the steady exclusion of artists from local townships. I argue that the presence of the NAF in Grahamstown creates fault lines that are not physical, but aesthetic, in nature, creating invisible boundaries that reward stage performances at the expense of street performances. I track a history of street performance at the NAF, with particular attention to its local mime tradition, to demonstrate how this axis of festivity was integral to developing the NAF's cultural cachet, but was systematically managed, policed or appropriated to fit organizers’ image for Grahamstown at festival time. This work troubles aspirational narratives of creative and cultural industries that South Africa and other African countries have come to rely upon as inclusive and sustainable routes of economic development.