This report examines the challenges facing young people living in rural Australia in relation to their health and well-being and explores the relevance of personal resilience to offset these challenges. Specifically, the report synthesizes the literature on rural Australian youth and the results of focus groups undertaken in five rural communities. In general, the findings of the focus groups tend to confirm the results of the literature review. Some young people were positive about living in the country, especially with regard to availability of sports activities. Others, especially in towns that had experienced population loss as a result of unemployment, were negative about their futures. Structural challenges affecting rural youth include lack of transportation, health and community services, public housing, and educational and employment opportunities. Social and cultural challenges include gender issues, the high suicide rate among Australia's rural youth, social isolation, and social division. The health and well-being of Aboriginal youth is especially in jeopardy. Resilience-based strategies offer a politically and socially acceptable approach for schools and communities to address specific health and education issues. Community strategies for policy development include recognizing the needs of young people living in low-density areas; the importance of community involvement; promoting agency collaboration; accounting for local diversity and specific needs; and gauging the sustainability of programs. The report also identifies areas for additional research, specific recommendations for schools and interagency collaboration, and examples of community programs geared toward rural youth and the development of personal resilience. (Contains 52 references.) (LP)