The study of density and crowding has expanded rapidly, due in part to concern about the impact of high density on the quality of life. In this paper results of a study which focused upon the intervening role of neighborhood variables in the experience of urban density are reported. Residents of moderately dense urban areas were surveyed and interviewed. The presence of local markets and pharmacies was found to increase the use of public sidewalks and streets. This appeared to interfere with residents' ability to regulate interpersonal contact outside of their own homes. Group development and conversion of public space to semi-private space were inhibited. Residents of streets on which the local markets and pharmacies were located were less likely to be observed interacting with others in exterior neighborhood space. They also complained more frequently than other residents of excessive unwanted contact. A number of the study's findings disproved initial assumptions about urban interaction. The implications of these results for understanding urban experience are considered. (Author/GC)