A study of three rural high schools in northern Tasmania (Australia) examined why vocational education and training (VET) programs had been established and what made them work. Three principals, four VET coordinators, and nine students were interviewed and two student focus groups were conducted. Results indicate that VET programs were established to improve retention rates of students after year 10. Until recently, most rural high schools in Tasmania did not offer years 11 and 12. Students had to move to larger regional centers to complete their schooling. Up to 50 percent of students returned to their home town in two of the study sites before completing year 11 due to difficulties related to relocation to new schools in large towns. There was also a need to provide education for local adults. Adults participating in local VET programs fell into two groups--young adults seeking further training to be eligible for the Common Youth Allowance, and mature adults seeking to upgrade skills or enter the workforce. Program outcomes included improvements in numeracy, literacy, and social skills; improved retention rates; updated work skills; improved attitudes towards education; new opportunities for staff due to the broader academic offerings; and an increased engagement with the community due to the new role of schools as providers of lifelong learning. Factors contributing to the success of VET programs included the vision of school leaders and their success in forming partnerships with local employers and students. (Contains 25 references.) (TD)