Cross reality (XR) display devices, such as augmented reality devices, with enhanced state control for anchor-based augmented reality applications are disclosed. In some embodiments, the devices are configured to obtain information identifying applications with respective anchor locations located within a first threshold distance metric of an XR device, with an anchor location corresponding to a real-world location at which virtual content is to be presented; determining respective states, selected from a multitude of states, to be assigned to the applications, the states being determined based on a proximity of the anchor locations to the XR device; implementing the states, with a first application being assigned a state to render virtual content, and with the first application presenting virtual content via the XR device; and in response to movement of the XR device, determining updated states of the one or more applications.