This chapter examines the concept of the Partner State, as a new form of symbiosis between state and civil society, based on the principles and practices of Peer Production. The general stance of Peer Production advocates is almost intrinsically anti-state. However, state theory arguably reveals that the examination of the state and its institutions actually helps us understand the position and potentials of Peer Production. A tentative union between Hegelian and Gramscian thought delineates why and how the State can, and arguably should, embrace and support Peer Production. Finally, a tentative framework for these prefigurative institutions is offered by Open Cooperativism.