Schools in two neighboring rural Kentucky counties ("West" and "East") were studied to determine the effect of differing school organization on school functioning and community-school relations. Data gathered from public sources, attendance at faculty, staff and school board meetings, interviews, and faculty questionnaires revealed similar growth and development patterns in the economy and schools of both counties, but historically greater prosperity and population in West County because of better transportation systems. A larger tax base enabled West County to establish and maintain an independent school system in the major town, although outlying county schools were consolidated. East County's schools were completely consolidated; no community schools remain there. Schools in both counties are governed by boards of education. Differences in school functioning appear to be more a factor of differences in size and facilities than in organization. However, school-community relations in both counties have been affected by organizational differences. West County's independent system maintains excellent relations with its community, but both West's and East's consolidated schools generally lack strong community ties except at the elementary level. Apparently, grade levels are significant in successful consolidation. Also, school organization is connected to economic conditions and school functioning to governmental mandates. (SB)