The development of contemporary cities in Brazil raises many conceptual questions for urban sociology. The lasting tradition of the Chicago School seems not to be applicable as it is based on the mayor assumption race related segregation. It has been assumed that therefore Brazilian cities are different. In this article, the author wants to question this perspective. Firstly, it will be demonstrated that the legacy of the Chicago School in Brazil had more to offer than generally accepted. It can also help to see that the Brazilian cities have been a "product" of a mutual misconception between American and Brazilian scholars about urban sociology. Secondly, the article argues for a renewed interpretation of the Chicago School against the background of contemporary debates in Brazil with regard to the issue of racial and social inequality and the concept of the favela.