This paper describes the former German Democratic Republic in transiti
on after unification, focusing on the new urban communities (Neubaugeb
iete) with particular reference to the levels of participation by resi
dents in local organisations. The immediate effects of unification inc
lude loss of subsidies, massive unemployment and special problems for
groups such as women, single parents, foreigners and young adults in r
esidential areas. Levels of participation in local organisation are lo
w because of a sense of futility and lack of familiarity. In the case-
study city of Rostock the new political parties are committed to prese
rving some of the older GDR values such as non-segregated housing. The
transition period has revealed enormously high expectations for socia
l and economic well-being which are constantly challenged by the reali
ty of everyday life.