The state-of-the-art review addresses the problems faced by rural education in the area of curriculum development and suggests that mechanisms for curriculum development may need to be different or redefined to allow rural schools to operate at their maximum potential. The report looks at the positive and negative factors influencing rural curriculum development and provides a definition of curriculum in the rural school district. Curriculum leadership and responsibility are addressed via eight components of the curriculum leadership hierarchy - administrator, curriculum director, curriculum steering committee, curriculum subject area committee, consultants, school board, students, and lay people. Six steps of planning and implementing school curriculum are outlined: (1) establishing the goal-objective hierarchy; (2) determining scope and sequence; (3) developing curriculum guides; (4) implementing curriculum through classroom instruction; (5) implementing curriculum evaluating activities; and (6) implementing curriculum revision based on evaluation findings. Among the nine advantages of the goal-objective hierarchy described are: development of curriculum can become systematic; relationship between school and individual teachers can be identified; and monetary allotments to departments or subject areas can be based on need. (AH)