Presented is a review of literature on the provision of special education services to handicapped children in rural areas. The inadequacy of such provisions is seen to be due to problems in transportation, unavailability of special equipment and teaching materials, and administrative problems. Cooperative programing is reported as the key innovative aspect of most federal programs. Discussed is the need for research in utilizing innovations in financing, staffing, modern technology, and transportation. Among conclusions listed is that consolidation of regular school districts is a major problem. Appended is a list of Title III projects. (SB)