Sparse populations in rural South Dakota school districts create stress regarding teacher retention while meeting the federal and state initiatives. The purpose of this study was to determine whether teacher retention is a problem in school districts within a sparsely populated area in South Dakota. The study also incorporated an evaluation of the leadership and management methods needed to motivate teachers to continue employment within a rural setting. This study compared retention of teachers in the 28 rural South Dakota school districts that received sparsity funding to 28 comparable South Dakota school districts that did not receive sparsity funding. The population for the study included a total of 56 superintendents and 560 teachers involved with the study of teacher retention in a rural school district within the 56 selected school districts. Surveys for both superintendents and teachers included Likert Scales that determined if teacher retention is a problem as well as focused on factors that affect teacher retention within sparsely populated rural South Dakota schools. Major findings that emerged from the study indicated general agreement between superintendents and teachers that teacher retention in sparsely populated school districts is a moderate problem throughout South Dakota. Additionally, there was general agreement regarding the problem of teacher retention among participants from districts that received sparsity funding and those that did not. Participants agreed to a great extent that in order to enhance teacher retention, administrators in sparsely populated districts must provide adequate support for their teachers including financial support, positive working conditions, and continued professional development opportunities. Geographic location also was considered to be an important factor affecting teacher retention. Recommendations emerging from the study included increasing teacher salaries and benefits, maintaining sparsity funding for those qualifying districts, and enhancing the coordinated support from state administrator and teacher organizations to convince state legislators to increase funding for education. District administrators also must consider providing adequate support for teachers financially and through continued opportunities for district-supported professional development. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]