State Management Architecture: From Context to External Stores

State management is one of the most debated topics in React. Every few months, a new library trends, and developers wonder: "Should I switch?"

The truth is, there's no single best solution. The right choice depends on what kind of state you're managing and how your application is structured.

In this post, we'll cover:

The two types of state: client vs server
React's built-in tools: useState, useReducer, Context
When Context breaks down
External stores: Zustand, Jotai, Redux Toolkit
Server state: TanStack Query and SWR
A decision framework for choosing the right tool

1. Client State vs Server State

Before choosing a library, understand what kind of state you're dealing with.

Client State

State that exists only in the browser and is owned by your UI:

Form inputs and validation
Modal open/closed
Selected tab
Dark mode preference
UI filters and sorting
Drag-and-drop positions

Characteristics:

Synchronous
Ephemeral (lost on refresh unless persisted)
You control the source of truth

Server State

State that originates from a remote source:

User profile from /api/user
Product list from /api/products
Comments, notifications, search results

Characteristics:

Asynchronous
Has a canonical source of truth (the server)
Can become stale
Needs caching, refetching, and synchronization
Multiple components might need the same data

Interview Question: What's the difference between client state and server state?

Answer: Client state is UI-owned data that exists only in the browser (form inputs, modals, preferences). Server state originates from a remote API and needs caching, refetching, and synchronization. The key insight is they require different tools: client state needs reactive stores, while server state needs cache management with features like background refetching and optimistic updates.

2. React's Built-In Tools

Before reaching for external libraries, understand what React provides out of the box.

useState: Local Component State

The simplest option for state that belongs to a single component:

function Counter() {
  const [count, setCount] = useState(0);
  
  return (
    <button onClick={() => setCount(c => c + 1)}>
      Count: {count}
    </button>
  );
}

Use when:

State is local to one component
No need to share with siblings or distant components

useReducer: Complex Local State

When state has multiple sub-values or complex update logic:

type State = { count: number; step: number };
type Action = 
  | { type: 'increment' }
  | { type: 'decrement' }
  | { type: 'setStep'; payload: number };

function reducer(state: State, action: Action): State {
  switch (action.type) {
    case 'increment':
      return { ...state, count: state.count + state.step };
    case 'decrement':
      return { ...state, count: state.count - state.step };
    case 'setStep':
      return { ...state, step: action.payload };
  }
}

function Counter() {
  const [state, dispatch] = useReducer(reducer, { count: 0, step: 1 });
  
  return (
    <div>
      <button onClick={() => dispatch({ type: 'decrement' })}>-</button>
      <span>{state.count}</span>
      <button onClick={() => dispatch({ type: 'increment' })}>+</button>
    </div>
  );
}

Use when:

State has multiple related values
Next state depends on previous state in complex ways
You want predictable state transitions

React Context lets you pass data through the component tree without prop drilling:

// 1. Create context
const ThemeContext = createContext<'light' | 'dark'>('light');

// 2. Provide at the top
function App() {
  const [theme, setTheme] = useState<'light' | 'dark'>('light');
  
  return (
    <ThemeContext.Provider value={theme}>
      <Header />
      <Main />
      <button onClick={() => setTheme(t => t === 'light' ? 'dark' : 'light')}>
        Toggle Theme
      </button>
    </ThemeContext.Provider>
  );
}

// 3. Consume anywhere below
function Header() {
  const theme = useContext(ThemeContext);
  return <header className={theme}>...</header>;
}

Use when:

Data needs to be accessible by many components at different nesting levels
Data changes infrequently (theme, locale, auth)

3. When Context Breaks Down

Context is great for low-frequency, read-heavy data. But it has a critical limitation:

The Re-render Problem

When the context value changes, every component that consumes it re-renders.

const AppContext = createContext({ user: null, theme: 'light', notifications: [] });

function App() {
  const [state, setState] = useState({
    user: { name: 'John' },
    theme: 'light',
    notifications: []
  });
  
  return (
    <AppContext.Provider value={state}>
      <Header />      {/* Re-renders on ANY state change */}
      <Sidebar />     {/* Re-renders on ANY state change */}
      <MainContent /> {/* Re-renders on ANY state change */}
    </AppContext.Provider>
  );
}

If notifications updates frequently, Header and Sidebar re-render even if they only care about theme.

Common Workarounds (And Their Limits)

1. Split into multiple contexts:

<ThemeContext.Provider value={theme}>
  <UserContext.Provider value={user}>
    <NotificationsContext.Provider value={notifications}>
      {children}
    </NotificationsContext.Provider>
  </UserContext.Provider>
</ThemeContext.Provider>

Works, but gets unwieldy as state grows.

2. Memoize consumers:

const Header = memo(function Header() {
  const theme = useContext(ThemeContext);
  return <header className={theme}>...</header>;
});

Helps, but doesn't prevent the context subscription from triggering.

4. External Stores: Zustand, Jotai, Redux

When Context isn't enough, external state libraries offer better performance and developer experience.

4.1 Zustand: Simple and Flexible

Zustand is a minimalist store with a hooks-based API. No providers, no boilerplate.

import { create } from 'zustand';

interface Store {
  count: number;
  increment: () => void;
  decrement: () => void;
}

const useStore = create<Store>((set) => ({
  count: 0,
  increment: () => set((state) => ({ count: state.count + 1 })),
  decrement: () => set((state) => ({ count: state.count - 1 })),
}));

// Component only re-renders when `count` changes
function Counter() {
  const count = useStore((state) => state.count);
  const increment = useStore((state) => state.increment);
  
  return <button onClick={increment}>Count: {count}</button>;
}

Key features:

No Provider needed (store lives outside React)
Built-in selectors for granular subscriptions
Middleware support (persist, devtools, immer)
Tiny bundle (~1KB)

Persisting to localStorage:

import { persist } from 'zustand/middleware';

const useStore = create(
  persist<Store>(
    (set) => ({
      count: 0,
      increment: () => set((state) => ({ count: state.count + 1 })),
    }),
    { name: 'counter-storage' }
  )
);

4.2 Jotai: Atomic State

Jotai takes an atomic approach — each piece of state is an independent "atom."

import { atom, useAtom } from 'jotai';

// Define atoms
const countAtom = atom(0);
const doubleCountAtom = atom((get) => get(countAtom) * 2);

// Use in components
function Counter() {
  const [count, setCount] = useAtom(countAtom);
  return <button onClick={() => setCount(c => c + 1)}>Count: {count}</button>;
}

function DoubleDisplay() {
  const [double] = useAtom(doubleCountAtom);
  return <div>Double: {double}</div>;
}

Key features:

Bottom-up approach (atoms compose into derived state)
No selectors needed — atoms are already granular
Works well with Suspense and concurrent features
Great for derived/computed state

When to choose Jotai over Zustand:

You prefer atomic composition over centralized stores
Lots of derived state (computed values)
React Suspense integration is important

4.3 Redux Toolkit: The Enterprise Standard

Redux Toolkit (RTK) is the modern way to use Redux. It eliminates boilerplate and includes best practices.

import { configureStore, createSlice } from '@reduxjs/toolkit';
import { Provider, useSelector, useDispatch } from 'react-redux';

// Slice = reducer + actions bundled
const counterSlice = createSlice({
  name: 'counter',
  initialState: { value: 0 },
  reducers: {
    increment: (state) => { state.value += 1 },
    decrement: (state) => { state.value -= 1 },
    incrementByAmount: (state, action) => { state.value += action.payload },
  },
});

const store = configureStore({
  reducer: { counter: counterSlice.reducer },
});

// Component
function Counter() {
  const count = useSelector((state) => state.counter.value);
  const dispatch = useDispatch();
  
  return (
    <button onClick={() => dispatch(counterSlice.actions.increment())}>
      Count: {count}
    </button>
  );
}

// App
function App() {
  return (
    <Provider store={store}>
      <Counter />
    </Provider>
  );
}

Key features:

Immer built-in (write mutating logic, get immutable updates)
Redux DevTools integration
RTK Query for data fetching
Type-safe with TypeScript
Large ecosystem and community

When to choose Redux Toolkit:

Large team with established Redux knowledge
Need robust DevTools and time-travel debugging
Complex async flows with thunks/sagas
Enterprise apps with strict patterns

Comparison Table

Feature	Context	Zustand	Jotai	Redux Toolkit
Bundle size	0 (built-in)	~1KB	~2KB	~10KB
Boilerplate	Low	Very Low	Low	Medium
Selectors	❌	✅	✅ (atoms)	✅
DevTools	❌	✅	✅	✅
Middleware	❌	✅	Limited	✅
Learning curve	Low	Low	Low	Medium
Best for	Theme, locale	UI state	Atomic state	Large apps

5. Server State: TanStack Query and SWR

Client state libraries like Zustand are not designed for server state. Server state has unique challenges:

Caching
Background refetching
Stale data management
Optimistic updates
Pagination and infinite scroll
Request deduplication

TanStack Query (React Query)

The most popular solution for server state:

import { useQuery, useMutation, useQueryClient } from '@tanstack/react-query';

// Fetch data
function UserProfile({ userId }: { userId: string }) {
  const { data, isLoading, error } = useQuery({
    queryKey: ['user', userId],
    queryFn: () => fetch(`/api/users/${userId}`).then(r => r.json()),
    staleTime: 5 * 60 * 1000, // Data is fresh for 5 minutes
  });
  
  if (isLoading) return <div>Loading...</div>;
  if (error) return <div>Error loading user</div>;
  
  return <div>{data.name}</div>;
}

// Mutate and invalidate
function UpdateUserButton({ userId }: { userId: string }) {
  const queryClient = useQueryClient();
  
  const mutation = useMutation({
    mutationFn: (newName: string) => 
      fetch(`/api/users/${userId}`, {
        method: 'PATCH',
        body: JSON.stringify({ name: newName }),
      }),
    onSuccess: () => {
      // Invalidate and refetch
      queryClient.invalidateQueries({ queryKey: ['user', userId] });
    },
  });
  
  return <button onClick={() => mutation.mutate('New Name')}>Update</button>;
}

Key features:

Automatic caching and deduplication
Background refetching
Stale-while-revalidate pattern
Optimistic updates
Infinite queries for pagination
Suspense support

SWR (Stale-While-Revalidate)

Vercel's alternative, simpler API:

import useSWR from 'swr';

const fetcher = (url: string) => fetch(url).then(r => r.json());

function UserProfile({ userId }: { userId: string }) {
  const { data, error, isLoading } = useSWR(`/api/users/${userId}`, fetcher);
  
  if (isLoading) return <div>Loading...</div>;
  if (error) return <div>Error loading user</div>;
  
  return <div>{data.name}</div>;
}

When to choose SWR:

Simpler needs (read-heavy, less mutation complexity)
Smaller bundle size
Vercel/Next.js ecosystem

When to choose TanStack Query:

Complex mutations with optimistic updates
Need fine-grained cache control
Infinite scroll / pagination
DevTools for debugging

6. Decision Framework

Here's how to think about state management:

Quick Decision Guide

Scenario	Recommendation
Data from API	TanStack Query or SWR
Theme, locale, auth	React Context
Complex forms	React Hook Form + Zod
Global UI state (modals, toasts)	Zustand
Lots of computed/derived values	Jotai
Large team, complex flows	Redux Toolkit
Simple local state	useState/useReducer

The Layered Approach

In practice, production apps often combine multiple solutions:

// Layer 1: Server state
const { data: user } = useQuery({ queryKey: ['user'], queryFn: fetchUser });

// Layer 2: Global UI state (Zustand)
const theme = useUIStore(state => state.theme);
const openModal = useUIStore(state => state.openModal);

// Layer 3: Local component state
const [isExpanded, setIsExpanded] = useState(false);

// Layer 4: Form state
const { register, handleSubmit } = useForm();

7. Summary

State management isn't about picking the "best" library. It's about matching the right tool to the right problem.

State Type	Characteristics	Tools
Local	Single component, simple	`useState`, `useReducer`
Shared (low-frequency)	Theme, auth, locale	React Context
Shared (high-frequency)	UI state, real-time	Zustand, Jotai
Complex global	Large apps, DevTools needed	Redux Toolkit
Server	API data, caching	TanStack Query, SWR
Forms	Validation, submission	React Hook Form

The best architectures use multiple layers:

TanStack Query for server state
Zustand or Context for global UI
Local state for component-specific concerns

Don't over-engineer. Start with the simplest solution that works, and add complexity only when you feel the pain.

What's your go-to state management setup? Have you tried combining TanStack Query with Zustand? Share your experience in the comments!

State Management Architecture: From Context to External Stores

1. Client State vs Server State

Client State

Server State

2. React's Built-In Tools

useState: Local Component State

useReducer: Complex Local State

3. When Context Breaks Down

The Re-render Problem

Common Workarounds (And Their Limits)

4. External Stores: Zustand, Jotai, Redux

4.1 Zustand: Simple and Flexible

4.2 Jotai: Atomic State

4.3 Redux Toolkit: The Enterprise Standard

Comparison Table

5. Server State: TanStack Query and SWR

TanStack Query (React Query)

SWR (Stale-While-Revalidate)

6. Decision Framework

Quick Decision Guide

The Layered Approach

7. Summary

Vikram Dokkupalle

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1. Client State vs Server State

Client State

Server State

2. React's Built-In Tools

useState: Local Component State

useReducer: Complex Local State

Context: Sharing State Down the Tree

3. When Context Breaks Down

The Re-render Problem

Common Workarounds (And Their Limits)

4. External Stores: Zustand, Jotai, Redux

4.1 Zustand: Simple and Flexible

4.2 Jotai: Atomic State

4.3 Redux Toolkit: The Enterprise Standard

Comparison Table

5. Server State: TanStack Query and SWR

TanStack Query (React Query)

SWR (Stale-While-Revalidate)

6. Decision Framework

Quick Decision Guide

The Layered Approach

7. Summary

Vikram Dokkupalle

Leave a comment

Comments (0)

More from architecture

From URL to Pixels: What Happens When You Enter a URL in the Browser

Micro-Frontends: Architecture Patterns, Trade-offs, and Implementation Strategies

API Layer Architecture: Managing Data Fetching at Scale

Leave a comment

Comments (0)