DATA ARE PRESENTED BEARING ON THE WIDELY HELD BELIEF THAT RAPID ECONOMIC DEVELOPMENT OF PREVIOUSLY UNDERDEVELOPED AREAS TENDS INEVITABLY TO RESULT IN INCREASES IN ALCOHOL CONSUMPTION AND IN CRIME AMONG THE INDIGENOUS PEOPLE AFFECTED. THE AREA CONSIDERED IS THE MACKENZIE RIVER VALLEY IN THE NORTHWEST TERRITORIES OF THE CANADIAN ARCTIC, WHERE, BEGINNING IN 1968, AN OIL EXPLORATION 'BOOM' BROUGHT RAPID ECONOMIC GROWTH. LIQUOR CONSUMPTION AND CRIME RATE DATA WERE STUDIED STARTING WITH 1960, BECAUSE IT WAS ABOUT THEN THAT NURSING STATIONS, AND THEREAFTER SCHOOLS AND LOW COST HOUSING ATTRACTED INCREASING NUMBERS OF PEOPLE INTO THE SETTLEMENTS. COMPARATIVE ALCOHOL CONSUMPTION AND CRIME DATA ARE PRESENTED FOR CANADA, FOR SELECTED CANADIAN PROVINCES, AND FOR THE NORTHWEST TERRITORIES. SIMILAR DATA ARE PRESENTED FOR THREE REGIONS OF THE MACKENZIE RIVER VALLEY, AND FOR SELECTED COMMUNITIES IN THE VALLEY. THE DATA ARE BELIEVED TO SHOW THAT LIQUOR CONSUMPTION AND CRIME RATES IN THE NORTHWEST TERRITORIES HAVE GENERALLY INCREASED MORE RAPIDLY THAN IN THE REST OF CANADA. AMONG THE COMMUNITIES IN THE VALLEY, HOWEVER, THE DATA SHOW A VARIETY OF RELATIONSHIPS BETWEEN DEVELOPMENT IMPACT, LIQUOR CONSUMPTION, AND OFFENSE RATES. THE INCIDENCE OF PROBLEM CONSEQUENCES IS HIGHEST IN THE LARGEST AND MOST RAPIDLY GROWING TOWNS IN THE DEVELOPMENT IMPACTED AREA. TABULATED DATA USED IN THE STUDY ARE INCLUDED. FOOTNOTES AND REFERENCES ARE ALSO PROVIDED. (AUTHOR ABSTRACT MODIFIED)