This paper describes two pilot programs that are developing networks among rural New Zealand schools to address the educational isolation of students. A program located in the South Island consists of a consortium of six small rural high schools using distance education technology to offer an expanded curriculum to rural students. The goal of the program is to overcome difficulties associated with small school size and reduce costs. The other program is located in the North Island and involves the linking of a large rural high school library software and CD-ROM facilities to 24 elementary schools. The high school also has access to the Internet via a link to a regional polytechnic center. Although these two networks are at an early stage of development, there are a number of emerging educational and policy issues that must be addressed: (1) rural schools' application of technology in extending curriculum at the secondary level and assessing learning outcomes; (2) learning needs of particular student groups; (3) participation of rural students in tertiary educational institutions and professional occupations as compared to their urban counterparts; (4) student and parent attitudes concerning the use of technology in reducing educational isolation; and (5) professional development needs of teachers. Contains 32 references. (LP)