This paper reviews and analyzes the research in rural education in Australia in recent decades. Research undertaken in other countries is examined where comparisons, differences, or explanations are useful in understanding the Australian context. Following an introduction to the Australian education system and summaries of demographic features of rural areas and schools, key concepts emerging from the literature are discussed. These concepts include rurality, isolation and remoteness, rural education, and distance education. The literature review is structured around four major themes. The theme of schooling covers teachers (recruitment, retention, training for rural areas, and affective factors); students (achievement, dropout rate, and education of minority groups); school-community relationships (community participation, school closing, school size, rural lifestyle, and rural school characteristics); and accommodation of rural students in boarding schools. Theme 2, technology, covers geographic isolation, technological innovation, and distance education. Theme 3, educational delivery, encompasses equal educational opportunity, curriculum, decentralization, service delivery, and educational models. Theme 4 examines distinctions between rural education and education in rural areas. This paper concludes with 23 research questions. Recommended research priorities are rural definition, teacher preparation, curriculum design, community participation, access to services, secondary education for isolated students, and educational provision to facilitate gender and cultural equity. Contains over 200 references. (SV)