The primary focus of this report is to examine the effect that geographical location may have on the performance of students from schools from all parts of Australia who participated in the OECD/Programme for International Student Assessment (PISA 2000). Approximately 5477 students from 231 school across Australia encompassing schools in Major Cities, Inner Regional areas, Outer Regional areas, Remote areas and Very Remote areas participated. Results for Australian schools located in Major Cities and Inner Regional areas were above the OECD average in reading literacy. Outer Regional areas and Remote/Very Remote areas were at or below the OECD average.