The report describes the population of children in Australia with spina bifida and/or hydrocephalus, notes their needs and characteristics, reviews their school placement and social circumstances, and considers future educational services for them. Initial chapters review the literature on medical, psychoeducational, and social-family aspects of the condition. A chapter on the treatment and early management of spina bifida is followed by a summary of a study of spina bifida and hydrocephalus in 130 children in Queensland. The study examined parental experiences at birth and hospital experiences throughout childhood. A study of the status of children with spina bifida and hydrocephalus in regular and special schools draws information from classroom assessments and teacher reports on such aspects as self-care, cognitive skills, and academic achievement. Another study features analysis of fine motor difficulties in this population. Interviews with 130 parents reveal information on management and schooling issues. Two final chapters address issues of long-term care and the future of schooling for these children. (CL)