Revision with unchanged content. Across the nation, university initiatives indicate an active interest in increasing racial diversity on college campuses, and in their surrounding communities. However, the number of People of Color who initially attend these universities often leave prior to graduation. The findings of this study, based in Boulder, Colorado, indicate that predominantly white university communities (PWUC), that self-identify as liberal, may prove as racially tense for People of Color as more conservative communities. This study includes discussion of the following: – Whites in these communities often feel entitled to educate people of color about ethnic culture. – Whites in these communities celebrate the visual aspects of ethnic culture, but struggle with the cross-cultural communication challenges that accompany a history of racial inequity. – People of Color living in PWUC’s communities cope by being silent, hyperethnocentric, and emotionally or physically retreating. – Youth of Color who grow up in these PWUC’s often feel awkward with other People of Color. The results of this research further the discussion of diversity, racism and classism between various racial groups living in predominantly white liberal communities. It is useful for educators, scholars and sociologists interested in issues of diversity, intercultural, and intracultural communication.