This paper describes the development of a research project in 1993 to address concerns and issues related to education of Aboriginal students in the Shoalhaven area of New South Wales, Australia. Specifically, the purpose of the project was to examine the relationships between Aboriginal communities, students, and their schools, and important outcomes related to employment, unemployment, and further education and training. The research team included Aboriginal education assistants (AEAs) from the participating schools, a local Aboriginal community representative, and representatives of the Koori Centre at Sydney University. Historically, indigenous people have been subjected to a range of research methodologies that have been unacceptable, inappropriate, and offensive. In contrast, this project emphasized the development of culturally appropriate approaches, based on participatory action research, that could be conducted by Aboriginal communities. As well as providing profile information and participating in interviews, each school was invited to develop and implement an action research plan based on their current priorities or concerns in the area of Aboriginal education. This paper includes reflections of research team members and addresses implications for education and research related to government and bureaucratic control and indigenous self-determination, domination by nonindigenous people, community-based decision making and representation, constraints and difficulties faced by AEAs, student concerns about educational relevance, and participatory and collaborative action-oriented research. (LP)