This study considers the role of ethnic differences in the relevance of the
local community as a network of social relations that provide companionshi
p, friendship and social support. Data for this study were collected from a
representative sample of the population in the Haifa metropolitan area, th
e third-largest metropolitan area in Israel. It was found that measures of
investment in the neighbourhood such as home-ownership and stage in the lif
e-cycle were not related to the number of locally based instrumental ties.
However, nationality had a negative effect. Israeli Jews reported fewer loc
ally based instrumental ties than the Arab Israelis. The findings provide p
artial support for compression theory. Israeli Arabs reported a higher numb
er of locally based instrumental social ties than Israeli Jews. Apparently
their higher levels of residential segregation compressed their social rela
tionships to the local neighbourhood more than was the case for Israeli Jew
s. Implications of the findings for other theoretical frameworks are discus
sed.