The teacher's guide contains lessons in intermediate English based on a fictitious community in Australia and its inhabitants. Lessons focus on two types of interaction: those with an interpersonal motivation (e.g., casual conversations), and those with pragmatic motivation (e.g., buying and selling, seeking help). The teacher's book provides a step-by-step guide to teaching the activities presented in the student's book, and offers suggestions for adapting and extending the activities. The ten lessons have these topics: neighbors; a child's medical check-up; a quarrel; giving advice; healthy lifestyles; job information; physical activity; accidents and medical emergencies; hospital care; celebrations and festivals; expressing feelings; social behavior; and a picnic at the beach. A transcript of the student's cassette tape is appended. (MSE) (Adjunct ERIC Clearinghouse on Literacy Education)