Using a large Australian social survey, combined with precise data on neighbourhood characteristics, Andrew Leigh explores the factors that affect trust at local and national levels. Trust is positively associated with the respondent’s education, and negatively associated with the amount of time spent commuting. Trust is higher in affluent areas, and lower in ethnically and linguistically heterogeneous communities, with the effect being stronger for linguistic heterogeneity than ethnic heterogeneity. Linguistic heterogeneity reduces localised trust for both natives and immigrants, and reduces generalised trust only for immigrants. Instrumental variables specifications show similar results. By contrast with the United States, there is no apparent relationship between trust and inequality across neighbourhoods in Australia.