Research on social capital and functional communities provides much needed information on the relationship between rural schools and their communities, and its impact on community viability. Schools are critical to the social and economic viability of rural communities; research suggests that social capital in rural areas has decreased disproportionately during recent decades, and that many small rural communities have failed to remain viable after losing their school. Social capital and functional communities create a symbiotic relationship between a school and a community; thus, integrating school and community development efforts should produce a synergistic effect that enhances the viability of both. With new information technologies, rural schools and communities can access the same information and opportunities as other schools and maintain their autonomy and viability. After a discussion of seven factors that affect change in rural schools, behaviors of successful rural leaders, and the application of social capital theory to rural schools and communities, the Infonet Project is described. Eight poor rural school districts in central Texas joined with Central Texas Telephone Cooperative of Goldthwaite, the Texas Rural Cooperative, and Central Texas Wireless to provide wireless TV service to each school and an interactive distance learning network linking the eight districts. The interactive classrooms have been used for staff and board training, community meetings, and continuing education classes. Surveys of district superintendents and staff revealed superintendents' role in supporting implementation of Infonet and the concerns of staff about the new technology and its impact on them personally. Contains 23 references. (TD)