After providing evidence of the decline of student academic ability and identifying some of the factors influencing this decline, this paper examines the role of community colleges in providing compensatory education for the growing population of students who are underprepared for college-level work. This examination begins by tracing the development of the community college and discussing the growth and magnitude of its involvement in remedial education. The next sections of the paper cite research studies and describe programs that provide answers to questions related to the integration of remedial programs into the college curriculum, particularly into transfer programs; the relationship between compensatory education and retention and articulation; and the role of counselors and guidance personnel in efforts to combat illiteracy and attrition. After discussing the effects of increased involvement in compensatory education on the faculty, academic standards, and integrity of an institution, the paper considers charges that segregated remedial programs are racist and class-biased and questions the public's willingness to pay the high costs of remedial programs. Finally, the paper makes several suggestions regarding the community college's course in providing developmental education, including a recommendation that remedial courses be integrated into the regular curriculum. (AYC)