The paper presents the community-based satellite system as a residential and program model to effect deinstitutionalization of mentally retarded young adults in urban centers worldwide. The system is reported to consist of a large, central educational facility surrounded by a series of small houses and apartment units (satellites). Benefits of this environment are discussed: small, family-style houses with a concentration of qualified support staff; easy development of continua of instruction between various satellite facilities; opportunity to teach basic skills in environments where they are normally learned; and no necessity for new construction costs. The author suggests that, with adaptations, the satellite model is applicable throughout the world in urban, and possibly rural, environments. (Author/SBH)