Recent educational research has demonstrated rural/urban differences in achievement and success in higher education. However, in order to assess the rural school's impact on student outcomes, rural/urban comparisons must be made after accounting for student background variables. Researchers have begun to question the generalisability of the effective school model for urban, suburban, and rural schools, given substantial differences in their social and organisational environments (Hannaway & Talbert, 1993). The purpose of this research study was to examine differences in student achievement between rural and urban schools in Western Australia, after controlling for student background variables. By using multilevel modelling techniques, this study demonstrated that the location of the school had a significant effect upon student achievement, with students attending rural schools not performing as well as students from ur ban schools.