A community consultation process that involved meetings and telephone interviews was conducted to determine the need for and type of residential treatment program that might be suitable for children and youth in rural, sparsely populated communities. The absence of a suitable facility resulted in children being sent many miles from their communities to residential treatment centers. The following six elements were found to be essential characteristics of community-based residential treatment: open and easy access, program flexibility, highly skilled staff, rapid assessment and intervention, decentralization, and cultural relevance. The proposal suggests the establishment of four, 2-bed facilities. The recommendation for more than one small facility is based on a demand for residential treatment service that is likely to be higher than is presently assumed. Each facility would be supervised by the supervisor of the mental health center. One full-time and one half-time clinician would work in the residential treatment facility and act as the point of contact for referral. Twenty-four hour access would be maintained through an emergency on-call system. The implementation of the model is required before its effectiveness can be measured. 4 references