This chapter reviews the educational situation in rural and other sparsely settled areas as well as the major developments in education since 1928 when the Office of Education reviewed trends in rural education for the biennium 1927-28, following a series of similar reviews. It is prepared in conformity to the changed policy of the Office of including, in its biennial survey, periodical reviews of certain phases of education covering a period more extended than one biennium, which will be followed in the future. An adequate understanding of the educational situation in sparsely settled communities at the present time and of major trends in education which have developed in recent years will, it is believed, be facilitated somewhat if certain important problems concerned are considered, first, in terms of the number of children involved; expenditures for their education; the number of qualified or under qualified teachers concerned with their education; and the like. As a background, therefore, for the discussion of the major trends in education to which this chapter is devoted, certain statistical information with some interpretation of its meaning and significance is considered at the beginning. This chapter is divided into the following sections: (1) The Significance of Education in Sparsely Settled Communities; (2) The State and the Rural Schools; (3) Organization for Local Administration and Support; and (4) Some Newer Practices in Education Outside of Cities. (Contains 4 tables and 73 footnotes.) [Best copy available has been provided.]