A strong local economy which allows residents of a community to work and shop near their homes is perhaps the best safeguard against the threats of urban sprawl, economic stagnation, physical deterioration and loss of unique identity facing many small towns. Utilizing a six-phase process advocated by the University of Wisconsin-Extension, residents of the towns of Oregon, Middleton, Waunakee and Deerfield have conducted successful community development projects. Phase 1, Initial Awareness, encourages elected officials, community leaders, citizens and sponsors to determine whether community development is appropriate. Phase 2, Community Involvement, relies on local media to promote informational meetings resulting in formation of a steering committee. Phases 3 and 4, Problem Identification and Analysis, involve community consensus study, visual analysis, trade area surveys, surveys of business owners/managers and building owners, threshold level analysis (business and potential study) and business district design alternatives. Phase 5, Follow-up and Action, includes immediate and long-range planning, consensus actions, design and economic assistance and resource identification. Phase 6, Evaluation, emphasizes continual feedback, formal response, monitoring successes and failures, and review. Case studies of the development projects and questionnaires used by the communities are provided. (NEC)