This manual recommends procedures for developing and operating a rural-based distance learning consortium. Following some brief definitions and an outline of the three basic essentials for success (trust, shared vision, and suitable telecommunication infrastructure), guidelines for developing a distance learning consortium are presented in five phases: (1) starting a consortium; (2) setting up the distance learning system; (3) preparing for distance learning instruction; (4) operating and managing the distance learning system; and (5) moving toward institutionalization. Discussion includes how to: identify potential telecommunications partners; develop a planning task force; form a coalition of participating school districts/higher education institutions; form a group of local district distance learning coordinators; secure technical telecommunication agents; complete technical preparations with telecommunication providers; bring member sites online; conduct first-year public relations; plan course offerings; identify and train teachers; involve the community; operate distance learning classrooms; manage the distance system, staff, and equipment; and move toward institutionalization. Fifteen appendices include various supporting documents. (AEF)