Summary of two phase conceptual and empirical examination of whether the social costs imposed by hazardous waste sites are reflected in residential property values. A hedonic analysis is used to account for other housing characteristics that affect property values. In Phase I, two sites were studied in detail, with some evidence of a rent gradient for one site (Pleasant Plains) but not for the other. In Phase I, more data were collected and analyzed for the Pleasant Plains site, which caused the apparent rent gradient to disappear. An unsuccessful attempt was made to locate a third hazardous waste site with air pollution and adequate property values data. The study fails to show that this property values approach is useful for estimating the damages from (or the benefits from more stringent regulation of) hazardous waste disposal.