Since the early 1970's a rapid increase has been experienced in the number of Aboriginal homeland communities being established throughout the Northern Territory. While educational services commenced to many homeland communities as early as 1972/3, such services did not commence in the Elcho Island area until 1983/4. Since this time educational services have been provided to eleven homeland communities in the Elcho Island area. Of the eleven educational programs established, five continued to operate at the end of 1989. It is established that homeland schools in the Elcho Island area differ significantly in characteristics of student enrolment, frequency of student attendance and in the homeland school's ability to continue to function as a viable community initiative. On the basis of the data presented in the study, the following four levels of classification of homeland schools is established; highly functional homeland schools, moderately functional homeland schools, minimally functional homeland schools, and homeland schools that have ceased operating. It is revealed that enrolment and attendance data, traditionally utilised by government authorities to prioritise the allocation of limited resources between competing homeland communities, is in fact a poor indicator for assessing a homeland community school's long term viability. This study identifies the following three sociological characteristics as being strongly correlated to the long term viability of homeland schools in the Elcho Island area; land affiliation, parental residency, and family mobility. From the analysis of the data, three recommendations are proposed; 1. In assessing the long term viability (functional status) of a homeland community school, educational administrators should analyse the three sociological indicators; land affiliation family mobility, and parental residency as an alternative to the more traditional method of relying primarily upon enrolment and attendance data. 2. In the allocation of scarce resources, especially resources of a fixed capital nature, to homeland community schools, priority be given to those homeland community schools that fit the profile of a moderate to highly functional homeland school. 3. Minimally functional homeland schools need access to resources in order to provide the educational programs requested by the local community. Resources provided for this category of homeland school need to be easily re-located should the educational program be suspended at the homeland community.