Eight public educational institutions serving three counties of Appalachian Maryland (Allegany, Garrett, Washington) have joined together to plan and develop public education on a regional basis in order to: (1) raise the overall quality of education; (2) broaden curricula to meet regional economic needs, especially at post-secondary level; (3) equalize educational opportunities; and (4) conserve staff, fiscal, and physical resources. The primary organizational mechanism is a voluntary educational cooperative, the Regional Education Service Agency. Benefits are being seen in: continuity of educational experiences, preschool through adults; identification of regional educational needs; innovative or demonstrative programs developed and tested at a manageable scale; responsiveness to needs without impinging on integrity of each institution; minimizing duplication and enabling members to develop concentrated programs; and raising quality of education above minimum standards. The four top program proposals are conservation of educational resources (with attention to the rural nature of two counties), community services, staff development, and public service communications satellite system. Other program areas are manpower development, curriculum home-based education, facilities and equipment, research and accountability, and regional education support. (RS)