Alloa started the match the stronger side, and in the opening minutes had shots from Ross Hamilton and James Stevenson saved by Roddy McKenzie in the Livingston goal.
The home fans and players were celebrating scoring the opener in the 16th minute, but Michael Bolochoweckyj's goal was disallowed after the referee had adjudged the Livingston keeper had been pushed.
Livingston tried to get back into the game but were continually stopped by a well- marshalled Alloa defence under the management of Gareth Evans, who took over as interim manager from sacked Tom Hendrie.
In the 26th minute Livingston came close to opening their account when Paul Daglish ran in on goal and passed to Robert Snodgrass, and only a perfect interception by Chris Townsley prevented the striker from opening.
The second half began as the first had finished with Alloa dominating the play, and in the 48th minute Jamie Stevenson out-jumped a static Livingston defence, but his well-placed header from an Iain Nicolson cross hit the bottom of the post and came back into play.
In the 59th minute Snodgrass connected with a Richard Brittain cross, but his strong header was brilliantly saved by James Evans in the Alloa goal.
Alloa's reward for their superiority came in the 66th minute when Bolochoweckyj headed a Stevenson corner past a helpless McKenzie from close range.
The Livingston fans were on their feet in the 75th minute when a fierce Paul Lambert free kick from 30 yards out came off the underside of the bar struck the goal-line and bounced back into play.
Livingston pulled out all the stops in the closing minutes to take something from this match, and in the closing minute equalised when Brittain ran on to a defensive clearance and from 15 yards fired home an unstoppable shot past Evans.