This paper describes three measures derived from a life events inventory to reflect an equilibrium model, a life crisis model and a positive mental health model of psychological well being. These measures were related to indicators of individual and neighborhood adjustment with data obtained through a household survey of 454 residents. Individual adjustment was predicted best by a life crisis measure defined as the difference between the number of positive events and negative events. Higher neighborhood admission rates to a community mental health center were related to the absence of positive events and unrelated to the number of negative events reported by neighborhood residents. (Author)