Virtual schools are increasingly common in New Zealand and internationally as schools are challenged to meet the needs of their students. This article presents a description of the distance-learning model used by a group of schools in rural Otago for the last decade. The leadership team and roles are described, and the funding model, which is based on reciprocity, is outlined. The most common teaching and learning practices are described, and support mechanisms identified. Finally, a summary of the research conducted since OtagoNet's inception is presented. This research shows that this model is generally effective for teachers and learners although, as is the case for other models of virtual school, a number of factors affect this.