This article compares feelings of discomfort and experiences of discrimination attributed to racial and ethnic difference among visible minorities and two white groups: “Europeans” and “white charter” individuals. In conducting the analysis, attention is given to the role of location by examining how responses vary in three types of locations in Canada: large and diverse metropolitan areas, smaller “second-tier” cities, and towns and rural areas. Using the Ethnic Diversity Survey (EDS) as the principal data source, the results of descriptive and explanatory multivariate analyses are presented. Logistic regression analyses confirm that race frequently is interpreted as underlying experiences of discomfort and discrimination in Canada, with visible minorities much more likely to report racial and ethnic discomfort and discrimination than the two white groups. While location is not strongly related to racial and ethnic discrimination, it has a significant impact on reports of discomfort. Residents of Montreal, Toronto, and Vancouver are more likely to report racial and ethnic discomfort than those living in non-metropolitan areas. As others have reported in Australia and Great Britain, living in diverse social environments where negotiation of difference is an everyday necessity heightens discomfort. The findings highlight geographical variations in the lived experience of multiculturalism that warrant further investigation.