An ethnographic project to develop a model for an ethnic studies program based on community education, community involvement, and a study of community history is described. The project took place in New Harmony, Indiana, a town of 600-700 persons with a strong European heritage, especially German. Part of the project staff was selected from the community, and an advisory council comprised 14 representatives from community businesses, institutions, agencies, and the general population. Project staff identified, collected, and developed German ethnic heritage materials relevant to New Harmony for secondary schools, teacher education programs, and community education programs. Activities included German language and culture classes for adults and secondary school students, community programs on German arts, exchange of students to and from Iptingen, Germany, and special programs for service and social clubs. Several insights into uses and problems of ethnography in curriculum development were gained. First, superficial consultation with community leaders who lead curricularists to think they know the community and have sufficiently involved the community will result in a curriculum that lacks relevance and goals that appear unimportant or ill-directed. Also, the incorporation of ethnography into the curriculum is itself an approach to ethnic awareness as students learn the skill of learning from others. (KC)