In a most unexpected kickoff time of 12.30 pm, the top two in the Premier League clashed.
Manchester City had the better of the opening exchanges as winter sunshine covered the Etihad Stadium.
The opening ten minutes flew by with City having plenty of territory but few chances.
In the 11th minute, Allison had the first of a few wobbles, in what was a shaky half for the Brazilian goalkeeper.
His misplaced pass fell straight to Phil Foden but the City winger struck a weak shot goalward and Liverpool breathed a sigh of relief.
This seemed to spark Liverpool into action.
Ederson was on hand to claw away Darwin Nunez's header following Mo Salah's clipped cross.
A minute later, the Uruguayan striker had a chance to get through on goal but couldn't get the ball out from under his feet.
Haaland then almost got a foot on the ball as Allison dithered just two yards from the goalline but he managed to scramble it clear in the nick of time.
Erling Haaland
In the 27th minute, the machine that is Erling Haaland made his mark yet again.
Another poor moment from Allison saw him slip as he attempted to release the Liverpool attack.
The slip resulted in a skewed clearance that fell to Nathan Aké.
The Dutch defender showed excellent footwork to skip away from a couple of challenges before sliding the ball into the big Norwegian striker.
Haaland fired low to Allison's left, and, although the keeper got a hand to it, the touch was not telling enough to deny City from taking the lead.
That goal sees Haaland hit 50 Premier League goals in just 48 games - a new record.
Allison made a decent stop to deny a Foden drive from the edge of the box as the game ticked towards half-time.
Liverpool almost had a bizarre equaliser in the closing moments as Dominik Szoboszlai's attempted through ball squirmed all the way through towards the bottom corner with Ederson reacting late to flick it away from goal.
1-0 to City at the interval.
Second Half
Liverpool started the second half with more intent.
City were looking for their 24th consecutive home win and would equal a record held for well over a century by Sunderland if they had taken all three points today.
Liverpool ensured that wouldn't happen but not before City saw some decent chances come and go.
Doku first released Julian Alvarez but the Argentinian could only fire over the bar from the edge of the box.
Haaland couldn't capitalise on a poor header from Trent Alexander-Arnold as he also skied his finish.
Ruben Dias then almost turned a Liverpool cross into his own net as the game ticked by with half an hour to go.
In the 67th minute, City looked to have doubled their lead from a set-piece but a VAR check for a foul on Alisson saw the goal disallowed.
With ten minutes left on the watch, Trent Alexander-Arnold sent a low diagonal drive into the bottom corner from just outside the penalty area.
Ederson was beaten and the game was tied up at 1-1.
Mo Salah provided the assist.
Both sides pushed on in the remaining moments, including eight minutes of added time.
The last chance fell to the perfect candidate for City.
Alvarez whipped in a corner and Haaland met it with a glancing header.
It flashed the wrong side of the post and meant that the points were shared.
City sit on 29 points with Liverpool on 28.
Arsenal and Spurs now have a game in hand on those two and can go ahead with wins this weekend.
