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Income derived from nonemployment sources (i.e., investment income and government transfers) is of increasing importance in rural areas. Knowing the extent and characteristics of a community's nonemployment income dependence can guide regional economic development and diversification strategies. This article explores nonemployment income dependence in Canada and compares social and economic characteristics of these communities to communities dependent on natural resources. Our findings suggest that the number of highly nonemployment income-dependent communities in rural Canada is relatively large, ranking second only to the number of highly agriculture-dependent communities. The prevalence of nonemployment income dependence in Canada varies by region, and social and economic characteristics in nonemployment income-dependent places are mixed. Nevertheless, a goal to attract private pension- and investment income-dependent households may be a sound economic diversification strategy for single-resource-dependent communities. [ABSTRACT FROM AUTHOR]