This report gives an overview on the variety of purchasing cooperatives that are organized for the purpose of reducing costs and improving the quality of products and services available to members. There are often more benefits for rural communities from membership in purchasing cooperatives for products and services that are less readily available, in comparison to urban areas. Some of the potential sources of cost reductions and marketing improvements are examined for purchasing cooperatives owned and controlled by independent retailers or farm supply cooperatives. The basic steps in organizing this type of purchasing cooperative and developing its operations on a sustainable basis are reviewed.