The recent downturn of the Australian rural economy has implications for th
e quality of rural life. In this study, quality of life was measured in ter
ms of both the circumstances of people's lives and their perceptions of tho
se circumstances. Objective life quality comparisons made between farmers,
ex-farmers, and metropolitan residents revealed that metropolitan residents
reported more frequent contact with family and close friends, while farmer
s reported more involvement in the community and more productive behaviours
. No such differences were found between ex-farmers and the other groups. A
nalysis of subjective life quality revealed no overall difference in absolu
te levels between the three groups. However, evidence is presented to sugge
st that subjective life quality is maintained through "domain compensation"
, where falling satisfaction in one domain is compensated by rising satisfa
ction in another. It is suggested that this may be a process basic to the h
omeostatic maintenance of subjective quality of life.