The relationship of several resources of the city—size, industrial diversification, percentage nonwhite, and income level—to family income inequality is examined using data from a stratified random sample of cities from the 1960 census. Through using the technique of path analysis, the contribution of each of these4city characteristics both singly and in combination is investigated. To find the best “empirical fit” of the data,3paths are dropped in the development of a second final model. The data show that while city size is related to industrial diversification and percent nonwhite, size does not help explain variation in income inequality. However, in combinaton, industrial diversification, percent nonwhite, and income level account for41percent of the variance.