The purpose of this qualitative, descriptive case study was to explore how principals, teachers, and instructional specialists (in small rural communities) perceive the influence of principal leadership style on teacher capacity, motivation, and setting, and the subsequent influence on student achievement in northern Arizona. The study sample was six elementary principals in one rural school district in northern Arizona, 18 third grade teachers from the six elementary schools, and six instructional specialists who work in the studies district. The conceptual framework for this study was Pitner's models of direct and mediated effects. The research questions addressed the areas of principal influence on teacher capacity, teacher motivation, and school setting, and the subsequent influence on student achievement. Data collected for this study included semistructured interviews with six elementary principals and focus groups with six instructional specialists, and 18 third grade teachers. Additional data collected from the MLQ-5X, and archival student achievement data from the Galileo assessment system from the third grade students at the six schools. The findings and conclusions from this study demonstrate that all stakeholder groups believe that principals' leadership styles influence teacher capacity, motivation, and school setting, with minor discrepancies in how principals influence student achievement. In addition, was the perception that teacher support was the most common theme identified for principal leadership style and its influence of teacher capacity, teacher motivation, school setting, and its subsequent influence on student achievement. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]