THIS DOCUMENT WAS PREPARED AS A REPORT TO THE NATIONAL ADVISORY COMMISSION ON RURAL POVERTY. A DESCRIPTION OF INDIAN EDUCATION FOR THE YEAR 1965 IS INCLUDED WITH STATISTICAL ANALYSIS OF SUCH FACTORS AS POPULATION AND THE USE OF FEDERAL FUNDING IN THE STATE OF ARIZONA. THE NATURE OF THE ARIZONA INDIAN EDUCATION PROBLEM IS DEFINED AND IS SEEN IN THE CONTEXT OF CULTURAL FACTORS IN SOCIAL ADJUSTMENT. VARIOUS ILLUSTRATIONS OF POTENTIAL CULTURAL DIFFERENCES ARE INCLUDED. TWELVE FACTORS FOR CLOSING THE EDUCATIONAL GAP OF THE INDIANS ARE PRESENTED. (JM)