Where a person lives has the potential to shape their choices and outcomes. It is reasonably well established that Aboriginal and Torres Strait Islander (Indigenous) Australians are more likely to live in remote areas than the non-Indigenous population and that this has implications for their ability to maintain important aspects of their life whilst, at the same time, constraining the services and jobs available to them. However, this paper demonstrates that even within an urban area, there is a large degree of residential segregation. Furthermore, the income and housing circumstances of the Indigenous population are a key determinant of their location. Indigenous Australians in urban areas are much more likely to live in areas where their neighbours have a low income or live in community rental. This residential segregation may lead to less social interaction between Indigenous and non-Indigenous Australians than might otherwise be the case.