MENTAL RETARDATION IS DEFINED AS A MENTAL DEFECT, NOT A DISEASE. LEVELS OF SEVERITY IN MENTAL RETARDATION ARE CAUSED BY AN INTERRELATIONSHIP BETWEEN HEREDITY AND ENVIRONMENT. ONE OF THE MAJOR PROBLEMS CONCERNS THE LONGER LIFE EXPECTANCY OF THE RETARDATE DUE TO IMPROVEMENTS IN MODERN MEDICINE. THIS IS CREATING A SITUATION WHERE RESIDENTIAL FACILITIES DO NOT HAVE THE SPACE TO CARE FOR NEW ADMISSIONS. SUCH FACTORS AS MOBILITY, LACK OF EDUCATIONAL OPPORTUNITIES, DANGER, AND ECONOMIC USEFULNESS ARE INTERACTING TO CHANGE THE RURAL ATTITUDE AGAINST INSTITUTIONALIZATION. THE ARTICLE CONCLUDES THAT TRANSPORTATION AND PROGRAM COORDINATION PROBLEMS WILL NEED TO BE SOLVED IN ORDER TO ESTABLISH ADDITIONAL FACILITIES IN RURAL AREAS. THIS PAPER WAS PREPARED FOR PRESENTATION AT THE NATIONAL CONFERENCE ON PROBLEMS OF RURAL YOUTH IN A CHANGING ENVIRONMENT (SEPTEMBER 1963). (JS)