The Annenberg Rural Challenge seeks to create an effective and sustainable rural school movement that actively involves families, communities, and educators in supporting good rural schools in reciprocal relationships with their communities and local environments. Twenty-six projects, involving hundreds of schools and communities, have been funded. This report focuses on observed "community-school exchange" at Rural Challenge sites while providing insight into the underlying goal of community-school integration through a "pedagogy of place." The following conclusions are drawn: schools most often initiate the exchange; there are mutually beneficial interactions between community and schools; younger and older people become collective resources to local communities; negative (school-community) histories create challenges to exchange; learning to interact is an educational process; diversity can be an asset; competing cultural views need greater recognition; and standards and tests need careful consideration. Appendixes include the views of the Annenberg Rural Challenge leadership; an evaluator's thoughts and observations on the Rural Challenge; background and context of the research and evaluation project; defining community and school exchange; and survey responses from students, teachers, and parents at seven evaluation sites. (SAS)