We investigate the ISM environment of GRB 060505. Using optical emission-line diagnostic ratios, we compare the ISM properties of the GRB 060505 host region with the hosts of unambiguous long- and short-duration GRBs. We show that the metallicity, ionization state, and star formation rate of the GRB 060505 environment are more consistent with short-duration GRBs than with long-duration GRBs. We compare the metallicity and star formation rates of the GRB 060505 region with four other star-forming regions within the GRB 060505 host galaxy. We find no significant change in metallicity or star formation rate between the GRB 060505 region and the other four host regions. Our results are consistent with a compact-object-merger progenitor for GRB 060505.