Understanding the Early Years (UEY) is a national research initiative. It provides communities with information to enable them to make informed decisions about the best policies and most appropriate programs for Canadian families with young children. This report is based on one of seven communities studied in 2001-2002. Children's outcomes were assessed in physical health and well-being, cognitive skills, and behavioural measures. The evaluation comprised measures for: (1) Family background (including information on parental income, level of education, and occupational status); (2) Family processes (such as positive parenting practices, engagement in learning activities, family functioning, and maternal mental health); and (3) Community factors (including social support and social capital, neighbourhood quality and safety, use of recreational, cultural, and educational resources, and residential stability.) Data for the report were derived from the National Longitudinal Survey of Children and Youth (NLSCY) Community Study, the Early Development Instrument (EDI), and NLSCY and EDI data collected from across the UEY communities. Niagara Falls findings include: (1) Approximately 25.7 percent of families have low incomes and 27.5 percent are single-parent families; (2) Children in Niagara Falls fare well in physical health and well-being, social competence, communication skills and general knowledge; (3) Area for improvement is cited as emotional health and maturity; (4) High prevalence of hyperactivity; and (5) Higher than average scores across family processes and community factors, with noted strengths in parental engagement, neighbourhood stability, and use of resources. (Contains 19 footnotes, 15 figures and 4 tables.) [This report was prepared with assistance from Shawn Dalton and Norman Daoust.]