A new proof of the impossibility of reconciling realism and locality in quantum mechanics is given. Unlike proofs based on Bell's inequality, the present work makes minimal and transparent use of probability theory and proceeds by demonstrating a Kochen-Specker type of paradox based on the value assignments to the spin components of two spatially separated spin-1 systems in the singlet state of their total spin. An essential part of the argument is to distinguish carefully two commonly confused types of contextuality; (...) we call them ontological and environmental contextuality. These in turn are associated with two quite distinct senses of nonlocality. We indicate the relevance of our treatment to other related discussions in recent literature on the philosophy of quantum mechanics. (shrink)