This article explores the vision, process, and reaction to the privatization of Mapuche lands in Araucanía, Chile, from 1871 to 1916. It shows how politicians developed a racial vision for Araucanía between 1871 and 1882 during the final battle with independent Mapuche forces. Chilean government officials and elite societies created land policies that targeted the removal of indigenous populations from fertile lands to expand industrial agriculture by favoring large Chilean-owned estates and partitioning small to medium-sized plots to European settler-farmers. From 1883 to 1896, the Chilean government put its vision into practice, investing in the recruitment of European farmers and reconsidering new laws regarding colonization, land rights, and indigenous settlements. However, after the 1891 civil war, the government retreated from expensive state-building projects. From 1896 to 1916, Chilean small farmers intensified land grabs and, in response, indigenous communities formed organizations to defend their lands. At the core of the conflict were the issues of land and racialized policies that defined land access. By examining laws, government reports, missionary chronicles, and indigenous writings, this article demonstrates the progression of a racialized language that excluded indigenous peoples from their lands, founded in the desire to privatize native lands and accelerate the making of a modern Europeanized nation.