A Televillage is a virtual community of people, businesses, government agencies, schools, libraries, health care providers, and others that have common goals or needs and are linked through telecommunications, information resources, and shared services. A Televillage can develop a strategic focus for community and regional development; organize, pool, and manage local resources and services; extend the capabilities of schools, government, and businesses; and facilitate access to information. Extensive research in 1991 and a 1992 feasibility study concluded that rural Kentucky areas could benefit by the Televillage concept. Two pilot Televillage sites were selected: Pikeville, to serve a mountainous and isolated area, and Elizabethtown, in a more densely populated region with an agriculturally based economy. Criteria for site selection included strength of local economy, nature of businesses or institutions, range of potential users, community leadership, technological infrastructure, proposed center facilities, concept understanding, and a sufficient market. The first two Televillages will be fully operational in early 1996. Appropriate facilities, technology infrastructure, and expected usage influence capital and operating costs. The technology platform is estimated to cost $350,000, while first-year operating costs could be an additional $300,000; however, variations in Televillage design could lower or raise this baseline estimate, and revenue could offset some costs. (RE)