A project examined the changing educational needs of community nurses in Britain with regard to needs assessment and quality of care in the context of the National Health Service and Community Care Act 1990. Phase 1 clarified the term "needs assessment" through focus group discussions. Phase 2 used observations and interviews to examine educational preparation and practice of needs assessment by district nurses and health visitors and develop recommendations for future educational provision. In phase 3, a group of experts from interest groups scrutinized findings and proposals for recommendations that were subjected to a content analysis. The ability to assess needs of individuals, families, and the local population served on the community nursing caseload appeared as a holistic endeavor. Certain aspects of needs assessment were learned better than others, perhaps due to a lack of clarity and understanding about some embedded features of need. Professional judgment required the development of critical skills and ability to conceptualize and articulate practice. The important role of the caseload-holding specialist teacher in the practice setting was highlighted. Data suggested real difficulties in teaching in an uncertain and rapidly changing environment in community nursing education and practice. Upgrading the level of preparation for community practice teachers was recommended. (Appendixes include 250 references, discussion group materials, instruments, and data tables.) (YLB)