This article briefly reviews the development of area measures of depri
vation. It examines the construction of indices of deprivation and the
uses to which such indices are put, particularly in respect of resour
ce allocation. Previous attempts to develop indices have been based on
a priori definitions of deprivation (eg the Department of the Environ
ment's z score and its successor, the 1991 Deprivation Index) and have
lacked an empirical base. The inherent difficulties in validation of
such indices are briefly rehearsed and the article presents work in pr
ogress on an index which predicts dependency on income support. The in
dex is based on weighted Census of Population variables and is constru
cted using multiple regression techniques. We present the findings and
two validation procedures.