The experiences of the 3-year Minnesota Severely Handicapped Delivery System Project have led to a model which utilizes resources of regional systems as key elements of a differentiated system for educational service delivery to the handicapped in rural areas and involves state education agencies, statewide regional centers, local education units, and the strengths and human capital of local communities. Problems rural areas have in delivering services to the handicapped are difficulty in attracting specialist teachers, travel costs to send children to specialized programs elsewhere, underidentification or inaccurate diagnosis of handicapped children, and lack of a clearly defined regional structure of service delivery for handicapped persons. The proposed model utilizes local strengths to the maximum extent and relies on regional resources for special conditions requiring expertise beyond that available locally. The core of the model involves strengthening the role of regional units which provide professional guidance/training, technical assistance, and supervision to local staff, while simultaneously strengthening local skills and encouraging involvement of teachers, parents, and community members. The model also includes strategies to serve needs of underserved groups of handicapped persons, uses technology for all phases of service delivery to the severely handicapped, and incorporates a management information system and a component to evaluate impact and cost-effectiveness. (MH)