There is a great need to build effective partnerships to serve rural communites. Rural schools are excellent places for new private sector partnerships, especially those concerned with utilizing the new educational technology uniquely suited to compensate for rural isolation and lack of financial and cultural resources. In many rural areas, the school is central to helping create the "sense of community" that is so neccessary. The Department of Education has recognized the unique and valuable contributions rural America has made to the social and economic development of this country. Because rural areas have not received the emphasis on education that they deserve (i.e., "simple equity"), the Department of Education has adopted a policy on rural education and the rural family for the '80s, which states in part, "Rural education shall receive an equitable share of the information, services, assistance and funds available from and through the Department of Education and its programs." During the past year, the Department has taken many specific actions to carry out the various initiatives which constitute this policy. Briefly discussed are some contemporary characteristics of rural America and rural education, how the Department is advancing the cause of rural education, and how partnerships in education can aid the improvement of rural education. (NQA)