This case study examines the impacts of South Plains College (SPC) (Levelland, Texas) on the local rural economy of Hockley County in which it is situated, as well as on the economy of neighboring, more metropolitan Lubbock County. The study addressed both business volume and employment impacts. Direct business volume impact was derived from four sources: the institution, employees, students, and visitors. A business volume multiplier of 1.5 was used for the local economy and 1.9 for the nonlocal economy. Direct and indirect expenditures attributable to SPC increased business volume in Hockley County by $21 million in fiscal year 1994, and the total employment impact on the local economy was 817 jobs. For the nonlocal economy of Lubbock County, total expenditures were also increased by about $21 million and the employment impact was about 500 jobs. The study finds that SPC makes a considerable impact on both local and nonlocal economies in terms of increased business volume and employment. Findings are used to speculate on the economic and educational losses that would result from the absence of SPC. This study's inclusion of impacts on the nonlocal economy provides higher education institutions with a new method for demonstrating institutional benefits to regional economies. Contains 17 references. (RAH)