Australian children from regional, rural and remote (RRR) areas exhibit lower educational outcomes than their peers in metropolitan areas. The mechanisms driving the comparatively poorer educational outcomes of children in RRR areas, however, are not well understood. This paper proposes and tests two sets of factors that may be responsible for these disparities: population socio-demographic composition and school climate. Using rich survey and linked administrative data from the "Longitudinal Study of Australian Children" (n = 9,248 observations), we estimate the relative contribution of these sets of factors to RRR children's disadvantage in NAPLAN numeracy test scores. Our results indicate that both socio-demographic and school climate factors account for part of the educational disparities between children in RRR and metropolitan areas. These findings suggest that hybrid policy approaches that tackle both the social determinants of educational success and use schools as an intervention site are required to close the achievement gap.