The work of the Northwest Regional Educational Laboratory (NWREL) in rural education focuses on the intersection between school renewal and rural community development. NWREL's Rural School-Community Renewal Research and Development project aims to develop the capacity of small rural schools enrolling many economically disadvantaged students to carry out long-term educational improvement efforts centered on community goals. Three parallel development goals address education and community resources for building local capacity; delivery of these capacity-building resources; and the interaction of capable community revitalization teams to provide mutual support within and across communities. This third-year formative evaluation report focuses on the last of these goals and builds on findings from the first- and second-year evaluations. Six pilot communities with high poverty rates, below-average student achievement, and low population growth were selected in Alaska, Idaho, Oregon, Montana, and Washington; four sites had substantial minority populations (Hispanic or Native American). The previous evaluations emphasized the need for sensitivity to existing community networks and suggested that diversity among rural communities means that they would seldom be at the same developmental place. These findings strongly mitigate the effectiveness of externally-applied models or designs. Accordingly, the unique context of each site was central to third-year efforts and presented some difficulties for networking activities. Detailed descriptions of the context, activities, and progress at each site are included. Data tables outline project design elements, NWREL activities, site progress based on original design elements, and third-year progress and hindrances at each site. (SV)