We studied the responses of leaders in a suburban community in western Canada near Edmonton, Alberta, that was affected by a false allegation of increased cancer risk. In 1986, a cancer agency responded to community concerns by conducting a study of cancer incidence (1979-1983) and reported elevations on the order of 25 per cent over expected for most sites. Reanalysis of these data several months later revealed an error in the population figure used to calculate the rates. Correction brought the rates into line with Alberta as a whole and comparable to those for other communities surrounding Edmonton. We interviewed elected and appointed public officials in one affected community as well as non-official community leaders and realtors to determine their subjective impression regarding the effect of the incident on their communities and to rule out alternative explanations for the drop in housing prices in association with the incident we have reported elsewhere. Their narrative responses were particularly interesting and articulate, and are quoted at length. Their collective perceptions appear to confirm the impression of a profound impact on the community, reflected in housing prices, and attribute at least part of the impact to the disclosure that a high official in the community was afflicted by cancer. Most felt that there remained a great deal of latent concern in the community and at least some felt that a subsequent public issue involving transmission line rights-of-way near the community reactivated this latent concern.