The rural school district examined in this case study is the smallest of the five covered in this series, which is published in conjuction with a planning manual on declining enrollment. The principal issue in this Minnesota district is simply survival. Its initially small enrollment has shrunk even further, and enrollment projections indicate that it will continue to decline. Operation costs have increased, even though the community, which wants to keep its two schools, recently passed a budget levy. Reduction in force has been accomplished through attrition and transfer, and educational programs have been somewhat curtailed. The major question facing district officials is whether the school system should continue to function in order to contribute to community vitality, or whether it should reorganize with neighboring districts to maintain an adequate educational program. This case study, along with the planning manual and the other four studies of Minnesota school districts, is intended to assist school officials and interested citizens in dealing with the problems associated with enrollment decline. (Author/DS)