All communication technology is inherently paradoxical with every advancement in connection simultaneously disconnecting. Space is transcended with two points connected, but the very act involves some degree of separation from the roots of physical space. The conflict of territorial emancipation and the search for place is at the heart of matter – what is community in a technological age? Is it possible to retain vibrant place-based communities while recognizing the absolute dependence upon digitalization and the increasing significance of digital communities? To what extent do Information Technology (IT) rich environments influence behavior in virtual and physical environments? Is there a symbiotic relationship between the two? This paper will make use of “medium theory” to evaluate the relationship between digital and physical communities. Using “medium theory” it will examine the relatively fixed features of each means of communication and how these features distinguish each medium physically, psychologically and socially from each other and from face-to-face interaction in the physical environment? With regard to digital environments, such variables as the senses that are required to attend to the medium, whether the communication is bi-directional or uni-directional, how quickly messages can be disseminated, whether learning to encode and decode in the medium is difficult or simple, how many people can attend to the same message at the same moment are considered when evaluating how the variables of the medium influence its social and psychological impact in both digital and physical environments. At the heart of this analysis is an assumption that there is a paradigm of “social equilibrium” that governs social relationships – that under ideal circumstances a balance between the centripetal and centrifugal force of media technology is possible and necessary. With an understanding of the unique social and psychological influence of a given medium, the values and priorities of place and non-place are selectively emphasized, nurtured, preserved or rejected as they vie with each other. In order to grapple with a paradigm of “social equilibrium” we will take a medium theory perspective in order to examine several key concepts upon which the nexus of relationships and technology rest.1) the concept of sustainability—Is a viable sustainable community dependent upon a combination of an internal and external communication infrastructure?2)A theory of displacement-- Communication technology displaces and relocates functions within a sustainable community. The former impediments of space and borders disappear as the limitations of site (place) are transcended by communication technology. This reciprocal and defining interdependence of place modified by communication technology can perhaps be described as “dis-place-ment.” One occasion replaces or dis-places the other. Digital place (the connection of one site with another) reallocates some portion of time shared with the other.3) the process of balancing-- The digital revolution challenges traditional forms of social cohesion associated with place-based communities. The introduction of any communication technology shifts and alters the equilibrium of social interaction. Can a desirable balance be attained in which the benefits of each situs of community are enjoyed without one eclipsing or cannibalizing the other? This paper will then reflect upon the following questions: Can community be sustained in the 21st century without dependency upon global media connection? To what degree is communication dependency built into a contemporary vision of community? Can a community dependent upon external connection retain an identifiable and idiosyncratic character? How can unique social spaces of a physical city best co-exist with a digital city?