In this paper, we develop and test a conceptual framework to link diversity in small-scale communities and local resource management, intended as the ability of a community to protect common resources. Diversity could reduce this ability by its adverse impact on the potential for collective action and the extent of individual attachment to the community. Using geocoded data on 1,600 Grade-3 gas leaks in 2016 across Boston and Cambridge, we show that block groups displaying higher degrees of ethno-racial and linguistic fractionalization in the most recent Census and American Community Survey enjoy a lower share of reparations of the local pool of leaks. In particular, the more robust and conservative estimates imply that moving from the 10th to the 90th percentile of the linguistic fractionalization distribution is associated with a decrease in the reparation share by 6.3 percentage points, compared to the baseline average of 3.7%. We address a number of empirical challenges inherent to the spatial nature of our data by estimating models at the leak level and accounting for spatial autocorrelation. Although we are able to confirm, through quantitative and qualitative evidence, that more fractionalized communities appear to be less endowed with social capital and individual attachment, measures of these concepts do not explain away the baseline results. We conclude by discussing possible reasons for this puzzle in the form of alternative mechanisms and other challenges to our approach.