The purpose of this field study was to develop a rural ungraded primary school with an accompanying design and appropriate materials for use by educators interested in this innovation. Pretests and posttests measured the effects of ungradedness on the reading achievement and personality development of the 177 students. Implemented by a $50,000 Federal grant, the school was initiated with the involvement of the staff, Board of Education, parents, and news media. Its development emphasized class organization, reporting to parents, experimental enrichment for students, and inservice training for teachers. Findings of the "Metropolitan Readiness Test," the "Spache Diagnostic Reading Scales," and the "California Test of Personality" revealed a statistically significant difference in the reading achievement of students on each level of the school and a statistically significant difference in the reading achievement of the female and male subgroups. No significant difference in personality development was found; nor was there a significant difference in the reading achievement of the black subgroup. It was concluded that the ungraded primary school appeared to have its most notable success in the areas of reading readiness and achievement. (Author/DD)