During the 1990s the number of Mexican immigrants living in the United States rose by nearly five million people. In previous decades, nearly 80 percent of Mexican immigrants settled in either California or Texas. Over the 1990s, however, this fraction fell rapidly. Less than one-half of the most recent Mexican immigrants were living in California or Texas in 2000. Many cities that had very few Mexican immigrants in 1990—including Atlanta, Raleigh-Durham, Portland, and Seattle—gained significant Mexican populations. The inflow of Mexican immigrants to Southeastern cities is particularly significant because of the potential impact on the labor market prospects of less-skilled African Americans. This chapter explores potential explanations for the widening geographic distribution of Mexican immigrants and examines the effects of Mexican immigration on local labor markets across the country.