Focusing on how "North Town" Anglos and Mexicanos have related to each other and have dealt with the proplems of economic inequality and racial discrimination, the study characterized the ethnic relations into three major historical periods: the "Rancho" Era (1900-30), the "Colonia" Era (1930-60), and the Contemporary Period (1960-75). During the "Rancho" era, ethnic relations took place under an extremely exploitative, paternalistic sharecropper system, supported by open racism, strict social segregation, and effective Anglo political machines. Within this environment, an extremely poor Mexicano laboring class created its own communities and sustained its cultural traditions. The "Colonia" era was marked by major transformations in the local labor system and "Mexican Town" as an independent community. Mexicanos began developing their own economic and political leaders and organizations. They began challenging the earlier patterns of economic exploitation and social segregation. The Contemporary period was marked by heightened Mexicano-Anglo confrontations over the control of the city, school, and county governments. This period saw the rapid rise and decline of a Chicano third party, the "Raza Unida", and the aggressive and conciliatory responses of local Anglos, who organized into the Better Government League. The present ethnic confrontation represents a process of "historical retribution" to some and a "sickness", a "cancer" in the American way of life to others. To most, the conflict is a great source of pain and confusion; and "North Towners" are struggling to recapture a more harmonious community life. (Author/NQ)