FODEM (FOrmative DEvelopment Method) is a design method for developing digital learning environments for widely dispersed learning communities. These are communities in which the geographical distribution and density of learners is low when compared to the kind of learning communities in which there is a high distribution and density of learners (such as those that exist in urban areas where courses are developed and taken by hundreds or thousands of learners who are simultaneously present in the area). Since only limited resources can be allocated for the design of a digital learning environment for widely dispersed learning communities, it is necessary to use what limited funds are available to obtain valid feedback from stakeholders and to utilize such feedback in an optimal way. In terms of the FODEM model, the design process consists of asynchronous development threads with three interrelated components: (1) needs analysis, (2) implementation, and (3) formative evaluation. In needs analysis, both theory and practice are used to define specifications for the environment. In implementation, fast prototyping in authentic learning settings is emphasized. Finally, formative evaluation is used to evaluate the use of the environment within the thread. FODEM has been applied to develop ViSCoS (Virtual Studies of Computer Science) online studies and LEAP (LEArning Process companion) digital learning too in the rural regions of Finland where the population is geographically widely dispersedly. (Contains 6 figures and 6 tables.)