A case study describes how a rural local education agency (Allegany County, Maryland) developed a comprehensive staff development system. It presents some contextual and theoretical background information, summarizes the problem as perceived by key actors, and then describes a series of activities resulting in the development of the comprehensive system. The early stages of the activity involved discussion among administrative staff, recruitment of outsiders, and clarification of goals and operating constraints. In the workshops that followed, an action research model was used, in which participants determined how each task (data collection, data analysis, selection, and implementation) should be done and who should take charge. Thereafter, a needs assessment survey was developed, in which 26 concerns and 29 items relating to knowledge and skills were rated by the various role groups--administrators, teachers, and aides. In general, concerns given priority suggested a need to clarify goals, coordinate resource allocation, and improve cooperation and communication. Analysis of the results also indicated the need for differentiated inservice programs designed specifically to address a particular role as well as areas of common concern to two or more role groups. The nature of the process--particularly the emphasis on equity and interdependence--and the total involvement of the staff are the most important factors in producing effective staff development activities. (TE)