The learning needs of older adults living in rural Tasmania, Australia, and the potential of online technologies to foster local literacy and community well-being were examined. The study used a qualitative inquiry strategy that included visits to three sites to investigate the literacy and numeracy implications of senior citizens' use of online technology. The sites were located in southern, central, and northeastern Tasmania. Local literacy program officials and practitioners were interviewed, and a questionnaire was administered to the online centers' users. The study established that access to online technology gives older rural people opportunities to improve their communication skills, develop a new awareness of their potential as learners, and engage in self-development. The following barriers to older learners' access to computers were identified: transport and access costs; attitudinal factors that may be related to limited literacy practices in a community; limited literacy skills; and lack of confidence. The positive outcomes resulting from online interaction included extension of social practices, including literacy and numeracy practices. It was concluded that the networks formed through the use of online access centers and interaction with online technology were suggested to be a crucial element of social capital. (The bibliography lists 36 references. The survey instrument is appended.) (MN)