The adult community education (ACE) sector in the state of Victoria provides an example of best practice in regional rural policy in Australia that may serve as a model for other areas of government effort. In 1997, 309,000 Victorians enrolled in adult and community education courses, such as business and technical skills development, literacy and English language courses, access and tertiary preparation courses, and general education courses. A network of more than 450 ACE centers and the Council of Adult Education provide adults with opportunities for lifelong learning. Factors contributing to the success of ACE include the following: (1) a powerful relationship between government and the community; (2) promotion of cultural diversity; (3) education that is affordable, cost effective, of high quality, and broad and deep; (4) use of technology to reach rural areas; and (5) addition of value to the community by promoting purpose and belonging. The program has a productive impact on leadership from within and outside the regions in the following ways: it helps to integrate education and training; it promotes community participation in development; it encourages partnerships between communities, business, and government; it provides opportunities for all age groups; it enables the school-to-work transition for youths; and it contributes to the quality of life in the region. (KC)