The digital divide is commonly understood to be the gap that exists between households and individuals who have access to information and communication technologies (ICTs), and the Internet, and those who do not. This paper proposes that the term digital divide should be extended to digital inequality in order to link regional uneven development with the gap that exists between those who have, or do not have, access to ICTs and the Internet. Digital inequality applies to communities, regions, and individuals, as well as households. Based on site visits in Newfoundland and Labrador, New Brunswick, Prince Edward Island and Nova Scotia, and interviews with community organizations and government personnel who were involved in establishing community networks and public access sites in these provinces, the research findings demonstrate that digital inequality at the local level is very complex. It requires the detection of specific community inequalities, the identification of local resources and needs, the existence of community co-operation, as well as ascertaining whether ICTs and the Internet are used as resources for problem solving.