Autonomy carries the promise of resolving longstanding distributive inequalities between indigenous and non-indigenous groups. Yet, contemporary autonomy arrangements have often been associated instead with a reduction in native communities' access to needed public goods and services. I situate these negative effects within a broader autonomy-representation dilemma: autonomy provides indigenous groups with more responsive coethnic leaders, but these leaders frequently face difficulties in collecting and deploying revenue. These capacity constraints often arise from the way national governments have recognized autonomy. As such, pursuing coethnic representation within the state might—under certain conditions—be more likely to provide indigenous groups with needed goods and services. Drawing on natural experimental evidence and an original survey of indigenous community presidents from Peru, I first demonstrate that achieving coethnic political representation within the state can expand indigenous groups' access to the public good they most need: water. I then illustrate how capacity constraints that arise from autonomy have prevented native groups in Bolivia's autonomous municipalities from achieving similar distributive gains. Ultimately, the findings provide insights for understanding the sources of—and potential institutional remedies for—indigenous groups' unequal access to local public goods in the Americas and beyond.