The exploratory investigation was guided by four research questions: (1) what are the similarities and differences in the readiness status between rural and urban first graders; (2) what is the relationship between the readiness status and socioeconomic status of rural and urban first graders; (3) what are the similarities and differences in the end-of-year reading and mathematics basic skills achievement of rural and urban first graders; and (4) what are the relationships between readiness characteristics and reading and mathematics basic skills achievement of rural first graders? The Cognitive Skills Assessment Battery (CSAB) and the South Carolina Basic Skills Tests (Grade 1) were administered to a random sample of 3,883 children (2,063 or 53% rural and 1,820 or 47% urban). Results of analyses indicated that 64% of the rural students were considered "ready" on the basis of their total CSAB scores while 68% of the urban students were considered ready; that socioeconomic status appeared to be more highly related to readiness status than urbanism; and that the differences found in reading and math were very small and may not be meaningful from a practical perspective. (AH)