The document discussed the functions of intermediate educational units their relation to rural schools, and the unique needs of rural schools. Chapter I traced the development of the American school system from its inception in colonial America to contemporary times. Characteristics of America's rural population were identified and briefly explained, focusing on educational opportunities in rural areas. The development of the intermediate educational unit was followed from its origin as a county unit to its relatively recent emergence as a regional one. Chapter II contained a detailed comparison of these units, explaining that intermediate units organized on a regional basis are much more efficient and economical than those limited by county lines. Chapter III discussed several specific programs provided through regional intermediate units which appeared to meet the needs of both small and large schools. Recommendations for bettering rural education covered: (1) regulatory versus service roles, emphasizing that, when regional programs are more effective than similar ones offered by individual schools, these schools should be required to participate in the regional program; (2) boards of control, which should represent the clientele organizations of the regional units; (3) financing, including guaranteed basic funding for core program operations; (4) staffing, especially the intermediate unit's chief executive and his administrative team, and (5) improving services to rural schools through these regional intermediate units. (KM)