Life satisfaction in the elderly has long been an area of considerable interest to gerontologists, and with good reason. As the numbers of elderly increase in our society, a better understanding of the process and determinants of successful adaption will be beneficial. Given the traditional self-reliant and independent lifestyles valued by the rural elderly and the less rigid lifestyles of the urban elderly, life satisfaction in those rural elderly who are institutionalized would be expected to be lower than the independent rural and urban elderly and the institutionalized urban elderly. Forty-two rural elderly (21 of whom resided in nursing homes and 21 of whom were independent) and 55 urban elderly (18 of whom resided in nursing homes and 37 of whom were independent) completed the Life Satisfaction Index-A. Analysis indicated that the independent elderly displayed higher life satisfaction than the nursing home elderly. The urban elderly reported higher life satisfaction than did the rural elderly. Perhaps the urban elderly experience greater life satisfaction as the result of the more social and accessible nature of urban areas versus rural areas. The rural elderly are restricted by the limited availability of social support systems, accessibility to services, and leisure activities. The more independent and self-reliant environment valued by the rural elderly may account for their lowered life satisfaction. The urban elderly may adapt to growing old more successfully and retain a higher level of satisfaction due to a more flexible environment. (ABL)