Government investment is often spatially targeted or tends to have a differential spatial impact. We require objective indicators to identify which areas have greatest need of assistance. We also need to be able to monitor the impact of various strategies on poverty over time. There are numerous problems associated with measuring poverty. There are also numerous problems associated with identifying its spatial dimension. These problems could be overcome, thereby permitting a more rational area-based approach to tackling the structural problems which cause deprivation to be more concentrated in certain areas. It is argued that area-based schemes should be diverse in nature and take advantage of local initiative and expertise.