Integrated school-community projects benefit both the rural community and the rural school in many ways. On the community side, such projects can stimulate the local economy, improve the quality of life, and strengthen the bonds of community. Schools gain resources and community support for educational initiatives, have the opportunity to develop an academic program rooted in experience, and can help students connect to the roles and responsibilities of adult society. Integrated school-community projects are best pursued through a formally organized collaborative group. Collaborative arrangements give structure to the process of developing an initiative, can help to bridge the factionalism that often arises within a community, provide a forum for airing concerns in a productive way, maintain support and stability during changes in personnel or politics, increase the available pool of resources, and build local capacity for other community development efforts. Eight basic steps in the collaborative process are briefly described: convening a group, assessing strengths and needs, establishing purposes and priorities, learning to work well together, planning projects, implementing the plans, assessing the results, and sustaining achievements. This Collaborative Action Team process is undergoing testing and refinement at 22 sites in 5 Southwestern states. (SV)