This paper demonstrates how jointly planned activities can provide an integrated system in bridging the quality gap between urban and rural education in Australia. A national communications policy and delivery system would provide a cost-effective way of improving services to rural areas. Rural schools and colleges can be transformed by developing partnerships between the school and the community. These programs can be implemented through open-access learning centers and community education centers which could meet a full range of relevant local employment, education and training needs in rural communities. This paper provides a case study analysis of recent experiences in Australian education, also drawing on recent experience in the Organization for Economic Cooperation and Development (OECD) countries and from Asian and Pacific Regional case studies. The main areas investigated in the case studies were: (1) collaboration between the national government and states; (2) collaboration across education sectors and between public and private providers; (3) giving the decision-making responsibility to the local level and broadening the base of school/college services to match local needs and priorities; (4) the setting of new national targets for post-compulsory education and training; (5) higher productivity through the use of technology; and (6) and evaluation of cost substitution measures. (LP)