In its first 18 months of operation the Centre has undertaken research on major issues and problems in rural education. Its publications have been received favorably, both in Australia and overseas. Visiting scholars from Alaska and Canada have made valuable contributions to the Centre's activities and have increased its links with agencies overseas. Two scholarships have been awarded to research students to undertake investigation of particular aspects of rural education, and the Centre's staff have participated in conferences attended by people with extensive interests in the field. The Centre has been a source of advice to public authorities, private agencies, and local communities about problems related to rural education. The Centre has established a presence in the field, and the tasks immediately before it are to diversify its program and consolidate its standing as a national research unit. Planning for future growth and development, however, must take into account competition for scarce resources. The report consists of a preamble and sections on staff, visiting scholars, scholarships, publications and reports, contact with organizations involved in rural education, research activities (commissioned research, funded reseach, core research, and information services), and future prospects. (Author/BRR)