A dialect of Rato-Romansh spoken in a Swiss town is examined in the context of lexical phonology. The structure of this dialect's lexicon consists of two levels defined by stress assignment, not cyclically in this case but at the end of each level. Other considerations that have been advanced as bases for level division within the lexicon, such as inflection versus derivation or affixing versus compounding, are either irrelevant or dependent on stress assignment in this language. These assertions are supported by illustrations from the dialect. (MSE)