Findings show that schizophrenia prevalence doubles as postcodes increase from quartile (postcode) 1 to quartile 4 for ethnic heterogeneity, disadvantage, and inequality. For the majority of individuals in Western Australia with both an arrest and a diagnosis of schizophrenia, the arrests will precede the schizophrenia diagnosis. Results were consistent with previous studies in showing that social disorganization indicators had maximum impact on arrest prevalence at the highest quartile level. This held true for both groups of offenders. Even though the joint prevalence of schizophrenia and offending is rare, rates of offending in persons with schizophrenia are influenced by area characteristics similar to those that influence rates in the general population. People with schizophrenia are more likely to be exposed to these influences and to other risk factors for offending behavior. Crime prevention considerations point to a greater need for services for people with serious mental illness living in areas characterized by social disorganization or inequality. This study takes advantage of prior record linkage between two population-based registers, the Western Australian Mental Health Information System and the Western Australian Arrestee Database. Table, figures, and references