Seven rural community colleges were selected to demonstrate the effectiveness of the community college in serving as a catalyst and facilitator for community education-work councils. The councils were intended to establish mechanisms for easing the transition from schooling to work. Initiated in 1977 through subcontract with the American Association of Community and Junior Colleges, the programs were implemented at the Community College of Vermont, Asnuntuck Community College (Connecticut), Motlow State Community College (Tennessee), Bayamon Regional College (Puerto Rico), Tanana Valley Community College (Alaska), De Kalb Community College (Georgia), and Southeast Community College (Nebraska). Chapters of this report discuss national office activities, including demonstration site subcontracts, prime contract budget requirements, case studies for each of the seven community colleges, and issues and problems regarding staff, the council, financing, service areas, and college and federal roles. Appendices take up the bulk of the document and include: Department of Labor-AACJC contract, request for proposal (RFP); RFP notice, grading device and request record; a list of RFP requests by state; application records, selection confirmation and rejection letters, demonstration site subcontract; reimbursement and financial report forms; information and publicity samples, project letters, and budget modification request. (LH)