Indicators are increasingly used in the allocation of resources in addressi
ng problems of disadvantage. The most commonly used indicators have general
ly been developed in relation to urban problems and there is a concern that
this fails to reveal problems as experienced in rural areas. Many of the i
ndicators that might be used are ambiguous and there appear to be few singl
e indicators that adequately capture the complex nature of the problems fac
ing people living in rural areas. An alternative approach is proposed, invo
lving the development of bundles of indicators that are defined around noti
onal numbers of people living in particular sets of circumstances relating,
for example, to employment, service provision, and access to housing. A nu
mber of bundles are suggested and illustrative results are presented For th
ree counties. Analysis illustrates how the results may be used to compare t
he incidence of disadvantage between urban and rural areas, the concentrati
on of disadvantage within rural areas, and the relationships between the va
rious types of disadvantage. The approach has potential both for analysing
the incidence of rural disadvantage and as a basis for the allocation of ru
ral development assistance.