American Indian children living mainly on a reservation, and White children living in the surrounding countryside, can inhabit one geographic world but two different social worlds. Of the two communities described in this chapter, one (American Indian) enjoys a wide range of support services provided by the tribe and the federal government, such as subsidized housing and health care. There is a strong tradition of family togetherness and pride in tribal identity. On the other hand, employment opportunities are scarce and seasonal and as a result, family incomes are low. The predominantly White community that lives in the surrounding area is proud of its Appalachian heritage, and is resentful of being viewed as “mountain folk” by outsiders. It has a higher mean income than that of the American Indians, with fewer families living in dire poverty, but lacks the safety net of support services provided through the Indian Health Service and the Bureau of Indian Affairs. In the study described here, we were interested in effects of the interplay between community resources and family strengths and weaknesses on the development of children, in particular, their vulnerability to psychiatric disorders.