"Data Trends" reports present summaries of research on mental health services for children and adolescents and their families. The article summarized in this "Data Trends" uses data from a multilevel longitudinal study, the Project on Human Development in Chicago Neighborhoods (PHDCN), to investigate possible effects of neighborhood residence on mental health problems in children. The authors examined the relationship between structural dimensions of families' place of residence and developmental outcomes for children, specifically internalizing problems such as withdrawal, depression, anxiety, and somatic complaints. The results of this study indicate that "neighborhood residence significantly contributes to children's internalizing problems". This is particularly important in view of the evidence of increasing poverty rates in the U.S. One unknown factor in these data, noted by the authors, is access to mental health treatment. If, as the results indicate, community social processes mediate children's mental health outcomes, this has important policy implications. The authors recommend that "interventions for at-risk children should also focus on neighborhood characteristics". Promoting better mental health among children will require interventions that facilitate community building and engagement, in addition to initiatives that address maternal depression and unemployment. The authors also make a number of recommendations for future research, including investigation of possible pathways to children's internalizing problems and moderators of outcomes. Relevant areas include exposure to violence, school-related factors, the role of parenting, and the relationship between availability of mental health services and children's mental health. [This "Data Trends" presents a summary of: Xue, Y, Leventhal, T, Brooks-Gunn, J & Earls, F.J. (2005). Neighborhood residence and mental health problems of 5- to 11- year-olds. "Archives of General Psychiatry," 62, 554-562.]