In 1952 Nepal launched a rural development program to improve economic, social, and educational conditions in rural villages, which comprise 91% of the nation's population. This paper examines school characteristics and educational participation in two districts and discusses a national evaluation of the rural education program. Lungruppa village panchayat is an isolated area lying at 3,500-11,000 feet in altitude and containing 888 households. The first school opened in 1961, and there are now 5 primary schools and 1 lower secondary school together enrolling 441 students and employing 13 teachers. Banke district contains fertile lowlands and forest resources; modern facilities are concentrated in urban areas. Three rural village panchayats in the district have a population of 16,360 and school enrollment of 933. Analysis of variables affecting educational participation in the two rural areas found that the single most important factor was sex; boys made up 76% of the school population in Lungruppa and 91% in rural Banke. Other significant factors were child's age and contribution to family earning; caste or ethnic group; father's education, income, occupation, and attitudes; distance from home to school; ethnic similarity between teacher and student; percentage of qualified teachers; and availability of classroom space and instructional materials. A national educational evaluation in 1981-84 showed wide differences in education between rural and urban areas, and low levels of enrollment for females, particularly in rural areas. This paper contains 17 references. (SV)