This paper proposes a methodology for the valuation of mental damage caused by a flood disaster using the Contingent Valuation Method (ICVM) and analysis of covariance structures. The unobserved mental discomfort of the victims of a flood disaster is expressed press quantitatively as a structural concept, which is used as the explanatory variable of the victims' utility function in order to measure their mental damage. The structural concept of the mental damage, which is considered as a negative local public good, is regarded is the production structure of. the victims stresses from the analysis of covariance structures. The applicability of the methodology presented in this paper is investigated using data collected from a recent flood disaster that occurred in Toyooka, Japan.