The answer
To handle server state properly: caching, invalidation, and loading states. Treating fetched data like local state means you write more boilerplate and miss these features. React Query removes most of that work.
Roadmap: State and Data Flow for a React UI
Why use React Query in a React UI build?
More FAQs in Roadmap: State and Data Flow for a React UI
State and data flow: identify the state, keep local state local, lift shared state to a common parent, use Context for widely-shared data, handle server state with React Query, pass data between screens appropriately, and keep one source of truth.
Because categorizing tells you which tool suits each. Local UI flags use useState, widely-shared state uses Context, and fetched data uses React Query. Without categorizing, you risk putting everything in one tool and creating re-renders or sync bugs.
After you have local state working and see what is genuinely shared. Put auth, theme, and other widely-shared, rarely-changed state in Context, and split Contexts by change rate to avoid unnecessary re-renders.
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