The crime statistics used in this study were derived from the Single Regeneration Budget (SRB) initiative, which is part of the central government's regeneration program to revitalize economically and socially disadvantaged areas in Great Britain. The allegations of racially motivated crimes reported to the police in the London Borough of Newham were collated to inform the development of the SRB initiative. The data used in the current study included a comprehensive set of all of the allegations of racial violence and harassment reported to the police between July 1996 and June 1997. A total of 620 allegations were used in the study. The annual rate of racially motivated crime per 1,000 population was calculated for each of the 24 wards in Newham for four ethnic groups: white, Black, Asian, and Chinese. The study used statistical and GIS techniques to identify whether there were any neighborhood effects that were associated with the rate of allegations of racist crimes and harassment. The study findings suggested that the ethnic composition of an area apparently had a significant effect on the rate of racially motivated incidents. Correlation and regression analyses supported the preliminary finding that the rates of incidence were significantly higher in neighborhoods where there was a large white majority and smaller groups of other ethnicities. This suggested that understanding the risks of racial victimization may best be achieved by examining particular geographical areas rather than focusing exclusively on differences in risk among ethnic groups. 3 tables, 7 figures, and 32 references