By 1922 New York was fed up with Prohibition
In 1923 the NY legislature passed a law eliminating New York's enforcement and enabling prohibition laws that had been passed parallel to the prohibition amendment and to federal law. Governor Smith, after much difficult political calculation, signed it.
New York said, essentially, "The federal government says alcohol is illegal, but we no longer have state laws to that effect and will no longer spend state resources enforcing what is a federal ban."
A New York city cop had no more power to bust you for alcohol than the Arizona state police today has to deport you. That's a job for the federals.
Needless to say, the US Treasury Department did not have the resources to keep New York dry.
The parallels to the complexities of contemporary state marijuana decriminalization laws are interesting. Essentially telling the federal government, "Do your own dirty work. We can't stop you but we don't need to help you."