THE VILLAGE COURT SYSTEM, PART OF THE WHITE REVOLUTION LAUNCHED BY THE SHAH IN 1963, WAS DESIGNED TO REORGANIZE THE SOCIAL AND ECONOMIC SECTORS OF RURAL IRAN AND TO WESTERNIZE THE NATION. THE VILLAGE COURTS, OR HOUSES OF JUSTICE, WERE TO BE THE BOTTOM TIER OF THE NATIONAL COURT SYSTEM. THEIR GOAL WAS TO INCREASE THE RATE OF SATISFACTORY SETTLEMENTS, AS WELL AS TO REDUCE THE URBAN COURT CASELOADS. THE VILLAGE COURT CONSISTED OF A MOBILE COMMITTEE RATHER THAN A PHYSICALLY FIXED INSTITUTION. FOR THE FIRST 1 1/2 YEARS, THE COURT WAS FREQUENTLY USED IN THE VILLAGE OF NASRIN. HOWEVER, VILLAGERS' NEGATIVE EXPERIENCES WITH GOVERNMENT AND COURT OFFICIALS RESULTED IN THE COURT'S BREAKDOWN AND SUBSEQUENT REVERSION TO PREREFORM TRADITIONS OF DISPUTE SETTLEMENT. THIS CASE DEMONSTRATED THAT STRUCTURAL FACTORS (LOCAL COHESIVENESS, THE GAP BETWEEN RURAL AND URBAN CULTURES, AND THE VILLAGERS' ABILITY TO IGNORE MANDATED CHANGES) AND THE NATURE OF THE REFORM ITSELF (INCOMPATIBILITY WITH LOCAL TRADITIONS, HASTY AND INADEQUATE IMPLEMENTATION) COMBINED TO PREVENT EFFECTIVE REFORM. THESE EXPERIENCES CAN BE APPLIED TO OTHER SITUATIONS TO ASSESS THE EFFECTIVENESS OF FUTURE REFORMS. A DESCRIPTION OF THE TOTAL REFORM EFFORT, CASES HEARD AT THE VILLAGE COURT, ADJUDICATION PROCESSES, CASE EXAMPLES, A TABLE, AND REFERENCES, ARE INCLUDED. (CFW)