Recruiting and retaining qualified, competent teachers is an ongoing problem for small school administrators. The reasons for high turnover are numerous and complex, e.g., preservice preparation is presently more suitable for large, metropolitan schools than for small, rural schools; career orientations fail to recognize that experience in small schools advances future plans and goals; and there may be a mismatch of personal value systems and rural lifestyles. Incentives for teachers to accept employment and to remain in small schools are varied and frequently innovative. Some are of no or low cost and are within existing resources; others require additional funds which may be obtainable only through legislative action, voter participation, or local largesse. Superintendents, school boards, and communities must exercise their creativity in recruiting and retaining good teachers and must work cooperatively to secure the additional funding required to meet the need for a competent and stable teaching staff. This digest defines the small school and discusses the following: reasons for high teacher turnover, old and new recruitment strategies, the housing problem, intrinsic advantages of small schools, salary and related incentives, retention activities, payment for incentives, and mutual support among small school districts. (NQA)