This paper highlights some limitations of research on the contact hypo
thesis. In the first section, we criticize the practice of describing
social intercourse between groups in terms of predefined categories, w
hich tend to void the process of its situated meanings, often reducing
it to a quantitative index. Intergroup contact, Ne argue, acquires me
aning within everyday practice and argumentation as individuals cry to
make sense of others' co-presence. By disregarding this, researchers
have overlooked how lay accounts of contact, and of the nature of the
social groups in contact, may accomplish racism. In the second section
, illustrating this argument, we examine a recent case of desegregatio
n in South Africa. This concerns the relocation of a 'black' squatter
community into an area that was designated 'white' during the aparthei
d era. Through discourse analysis of interview data, we identify sever
al constructions of interaction between 'squatters' and 'property owne
rs'. We focus on a set of accounts in which contact was portrayed as a
form of territorial invasion, exploring their local rhetorical and br
oader ideological functions.