Concerned with the role of education in the development of rural areas, this report summarizes some of the major findings of the Australian Education and Local Development (ELD) projects combined with information collected from New Zealand rural areas during 1983. The five major studies contributing to the report are: (1) a case study of the Victoria Country Education Project; (2) the Western Australia ELD project which investigated education system policy and practices that would support local development in rural areas; (3) case studies of the Disadvantaged Country Areas Program and the School to Work Transition Program in the Riverina region of New South Wales; (4) contributions of the Tasmanian District High Schools to their local communities; and (5) a case study of the 1983 Westland Learning Festival held in New Zealand. Findings of these studies are used to discuss how education can lead directly to local economic development, give support to local economies, contribute to local political development, support local society and culture, and form partnerships for the provision of joint resources. (JHZ)