There is a growing consensus that the incidence of schizophrenia is increased among migrant populations. The aetiology and ethnicity in schizophrenia and other psychoses (AESOP) study was carried out in cities where migrants, their children and grandchildren have lived for many years. The hazard ratio for psychosis and depression for four increasingly urbanised areas was compared with the most rural/least urbanised area. In the AESOP study, the rates of schizophrenia and mania were elevated in South London compared to those in Nottingham and Bristol, and this difference persisted even when adjusting for differences in age and sex. One consequence of living in a deprived environment may be restricted access to resources, be these directly because of personal hardship, poverty or because of the lack of opportunity to access resources in the community. The association between ethnic identification and distress are mixed and complicated by contextual factors.