A study of two neighboring rural school districts in New York State was undertaken to determine if differences in educational quality existed between the two communities--Applegate and Bakerville--and to identify factors affecting educational quality. Comparison of demographic and socioeconomic characteristics included racial and ethnic distribution, industrial bases, community life, leisure activities, religious life, attitudes about school, educational training, and community priorities. Comparison of school systems included district histories, experiences with reorganization, school board composition, administration, teachers, unions, curriculum offerings, student achievement, and student aspirations. The two communities were remarkably alike for all variables considered except that important differences existed in the academic offerings and educational service delivery of their school systems. While Applegate offered the type of limited educational program often associated with rural schools, Bakerville exhibited an academic vitality suggesting that the problems faced by rural schools are surmountable. The role played by the Bakerville superintendent appeared critical in that district's success and paralleled the role of principal for effective inner-city schools as described by Rosenholtz (1985). The processes underlying effective schools, as enumerated by Rosenholtz, existed in the Bakerville School District and included improved student performance as a clear objective and involvement of the faculty in realizing that objective. (JHZ)