Rural citizens are being offered increasingly urban public services. Many rural residents resent this service growth, while others clamor for more. This disagreement is the result of a demographically and economically dynamic rural hinterland that is absorbing more and more of the U.S. population. The situation sets up a classic confrontation between old and new — established resident and new migrant. Rural areas are characterized by: (1) dispersed population and low population density, (2) low-money income, although real income is increased by higher payments-in-kind, and (3) population shifts that have major effects on small communities. These socioeconomic characteristics make rural areas different from urban areas. They deeply affect rural service delivery and Federal and State policy. These impacts must be understood so that independent rural communities can select efficient systems benefiting the entire Nation. This article explores each characteristic and its influence on rural areas.