Young people growing up in rural and isolated areas of Australia face particular challenges because structural change to the rural economy has dramatically affected their communities. Structural challenges include limited transportation, health and community services that are difficult to access and not confidential, scarcity of affordable housing, lack of postcompulsory educational opportunities, and few job opportunities. Social and cultural challenges include gender issues such as domestic violence and gender stereotypes, suicide, social isolation and an absence of legitimate spaces for young people to congregate, and the effect of social class in generating a sense of exclusion. Many of these challenges are more severe for Aboriginal youth. Strategies that address these issues include listening to young peoples' concerns and involving them in community decisions; involving local communities in planning, developing, managing, and providing services and programs; fostering interagency collaboration to replace the current climate of competition between agencies for limited funding; recognizing that the diversity in methods needed to address specific local needs can be fostered by including local people in all stages of program and service provision; and ensuring the sustainability of programs by taking time to develop collaborative processes and designing them to fit funding and support levels. Factors that are likely to facilitate success are the support of schools, students, and the community; addressing local issues rather than departmental priorities; and better coordination at senior department levels. (Contains 32 references.) (TD)