Intrasite variation in the production and consumption of obsidian prismatic blades is investigated at the Protoclassic to early Late Classic period site of Palo Errado in Veracruz, Mexico. There, the recovery of macrodebitage, as well as eraillure flakes, platform overhang flakes, and debitage with 90 degree angles between dorsal scars indicates that local blade production occurred at the site from imported marcocores and large polyhedral cores. In addition, detailed ceramic and obsidian data from excavated contexts demonstrate that the elite were involved in blade production and consumption, while the inhabitants of Mound 9, a non-elite, residential workshop locus, were specializing in prismatic blade production for exchange. At some point in the Early Classic period, the elite of the site undergo a significant change that intensifies their use of status markers, such as serving ware and personal adornment that corresponds to a decrease in elite blade production and an increase in blade consumption. However, no change in how blades are used by the elite is evident in this transition. While the vast majority of the obsidian artifacts recovered were made from Zaragoza-Oyameles obsidian, significant intrasite variation in minor sources, as well as the types of blades recovered and degree of edge wear suggests that the elite and nonelite participated independently in a variety of obsidian provisioning networks. In the case of the Mound 9 residents, the ceramic and obsidian assemblage suggests that their economic independence corresponded to a physical and ideological separation from the rest of the site. In general the production and consumption of obsidian does not suggest its use in a local political economy. Rather, the inhabitants of Palo Errado may have been exchanging and obtaining obsidian commodities within local and regional marketplaces.