Economic growth and development have many implications that need to be considered so that informed decisions regarding the community can be made. Although expansion of an existing establishment or a newly located plant or business are the primary means by which communities seek economic growth, growth can also occur when the new industry is located in a nearby community and residents commute to work. Government programs are another source of economic change. Some impacts of change may be positive, others negative. Sometimes the growth in the private sector does not justify all the expense the public sector must incur because of a large influx of new residents. Private sector impact is the effect on employment, income, or sales. Public sector impact includes the increased revenues from property taxes as well as the increased expenditures on schools, health and welfare programs, police and fire protection, utilities, recreation, streets and sanitation. Estimating community net gains in dollar terms can be accomplished by calculating the net gains and losses for each sector and comparing the two sets of figures to determine if a particular course of economic development is in the best interests of the community. This report concludes with examples from three hypothetical rural or small communities illustrating how the benefits and costs of potential projects are calculated. (DS)