A study was undertaken to determine to what extent recreation enterprises in rural Appalachia can help meet the growing urban demands for outdoor recreation and provide profitable use of rural resources and employment for rural people. The analysis, drawn from a 1966 nationwide survey, included 35 campgrounds, 18 fishing areas, 14 vacation farms, 10 hunting areas, and 9 riding stables. In general, the kinds and qualities of facilities found in this survey have limited potential for expansion to meet increasing urban needs for outdoor recreation. Most of these recreation enterprises were small, family-operated, and supplemented other major income sources. Capital investment specifically for recreation usually was small and often was undistinguishable from that of the overall farm. A minimum of facilities and services usually was provided. Relatively isolated locations and managerial disinterest in expansion helped keep these enterprises small. Occasional exceptions demonstrated that supplemental enterprises providing larger incomes can be established when favorable conditions exist. But managerial interest and capabilities often are major limitations. (Author/KM)