Nonmetro local governments increased their real per capita spending by 4 percent from 1977-82, despite reduced Federal and State aid. Financing that growth in spending required greater efforts to raise local revenues, mostly from nontraditional sources. Nonmetro governments became more self-reliant fiscally and their revenue bases more balanced, both of which are positive developments. However, for many nonmetro areas, these developments have contributed to increased fiscal stress for their local governments. Nonmetro government debt also increased, adding to the fiscal pressure on nonmetro communities. A continuation of these trends may make it increasingly difficult for rural communities to keep taxes and public services at levels compatible with economic development.