Rural communities that envision a bright future for themselves and their children have become innovative out of necessity--they learn, and adapt, in order to flourish and to provide opportunities for their children. As the formal centers of learning, and often as the largest employer in the community, rural schools become the heart and symbol of learning and community identity. Unfortunately, their policy and legislative environments often lead to tensions between rural priorities/lifestyles and urbanizing/essentializing agendas which impact upon the quality of schooling they wish, or are able, to provide. This tension was the focus of a study on rural educational priorities and school division capacity, based on a provincial survey and four case studies of rural school divisions representing four educational regions in the province of Manitoba. Findings suggest that three educational priorities remain central to the creation of high quality learning environments in rural schools: Improving Student Outcomes, Quality of Teachers and Administrators, and Educational Finance. This paper elaborates on the challenges facing rural school divisions for these issues, and discusses some of the ways in which four Manitoba school divisions, the Manitoba Association of School Superintendents (MASS), the Manitoba Association of School Trustees (MAST), and Manitoba Education, Citizenship and Youth (MECY) are working to address these difficulties in what has become a policy window (Kingdon, 1995) for rural education in Manitoba. (Contains 1 table.)