Agglomeration--the clustering of people, businesses, or structures within an area--is investigated for two purposes: (1) defining the nature of agglomeration and erecting a suitable agglomeration theory, and (2) suggesting further research. These two objectives are seen as being vital to help improve the economic well-being of rural people by developing appropriate actions based on new knowledge. In addition to surveying the literature, which has been written exclusively from the urban point of view, the report also analyzes agglomeration to determine gaps to be filled by further study in terms of a rural point of view. The report concludes with a listing of 3 broad and 7 specific areas of research which should be undertaken. A 78-item bibliography concludes the document. (DB)