The Nevada System of Higher Education (NSHE) is constantly working to provide and extend educational opportunities to all of the state of Nevada. With the rapid population growth experienced in Nevada, there are an increasing number of students eligible for and participating in some form of higher education. The NSHE employs many successful programs to reach these students; one particularly successful method is through distance education. It is the intent of this report to assist NSHE educators in the understanding of distance education and the issues associated with it. To better understand distance education in the NSHE, the focus of the report turns to the presentation of performance data through Spring 2005. Data and analysis are offered on the following areas: enrollment and student demographics. A list of recommendations that will help NSHE meet the needs of the new reality created by distance education is presented. Board of Regents' "Handbook" Title 4, Chapter 14 Section 11 is appended. (Contains 11 tables and 11 charts.)