Examples of projects, notably those using watersheds, that local community action groups can promote in planning and developing needed recreational facilities are discussed in this study report. Objectives of the report are to create an awareness of group action in obtaining recreational development, to emphasize that community action is important in total rural development, and to point out that traditional private and/or public recreational development is incomplete. Local community action groups--organized as associations, nonprofit corporations, cooperatives, or municipalities--are described as powerful forces in rural and recreational development. The role of the Farmers Home Administration in providing loans for recreational development is presented. Also, information is given concerning the part cooperatives (an established form of local action in Wisconsin) play in furthering recreational development. A summary is included, and some possible effects of recreational development on the community are listed. This report shows that both water- and land-based recreational facilities can be established, in locations where the private or public sector is not now providing these facilities, if there is local interest plus adequate planning, and if financial assistance is available. (PS)