Until recently, Latinos generally were well integrated geographically and did not live in concentrated Latino neighborhoods. That is changing. Latinos now are more likely than ever before to live in isolated Latino areas. If this trend continues, Latinos soon will surpass African Americans as the most segregated minority group in the United States. For decades, political scientists, sociologists, and historians have tracked the perils of residential segregation in the African American community, but the consequences of segregation for Latinos in the United States are far from clear. Using the Social Capital Benchmark 2000 survey, this article investigates the civic consequences of segregation. The data suggest that living in a segregated area decreases the likelihood that Latinos participate in community-building activities. These findings directly challenge previous research that purports to find benefits from living in racially homogeneous areas.