The prevalence of depression by sex, age and certain sociodemographic variables was investigated in a sample of elderly Finns (60 years or over) living in the semi-industrialized municipality of Ahtäri (n = 1529). The study was carried out in two phases. In the first phase, depressive symptoms were screened with the Zung Self-rating Depression Scale (ZSDS). In the second phase, persons scoring greater than or equal to 40 points in the ZSDS and a random sample of persons scoring less than 40 ZSDS points were examined by a general practitioner. The prevalence of depression was determined on the basis of DSM-III criteria. The estimated prevalence for men was 22.4%, and for women 29.7%. The estimated prevalence for different categories of depression was as follows: dysthymic disorder, men 17.2% and women 22.9%; major depression, men 2.6% and women 4.5%; atypical depression, men 2.2% and women 2.5%; and cyclothymic disorder, men 0.4% and women 0%. No cases of bipolar disorder were found. A high risk of depression was associated with female sex, widowhood and being in long-term institutional care or receiving home nursing and/or home help. The occurrence of depression was not related to age, education or occupation.