This study examined the relationships between drug use and problems and the socio-economic status of the neighbourhoods in which students lived. Students in Grades 11 and 13 were asked for their postal code as socio-economic data are available for postal code areas. We found the largest number of alcohol and drug problems in areas with the lowest socio-economic characteristics. These areas were characterized by low cost substandard housing, and social and racial problems and delinquency.