Arunachal Pradesh is basically an agrarian state, 66% of the total working population is engaged in agriculture and other allied activities. Initially, the State had adopted the Cooperative Societies Act, 1912. Subsequently, State enacted its own Law “The Arunachal Pradesh Cooperative Societies Act, 1978 and Arunachal Pradesh Cooperative Societies Rules, 1982”. At present all the cooperative societies are registered in the State of Arunachal Pradesh under the said Act and are governed under the provisions of the Arunachal Pradesh Cooperative Societies Act, 1978 and Arunachal Pradesh Cooperative Societies Rules,1982 made there under. The State Government has chosen cooperative institutions as a means to overcome the prevailing difficulties and were assigned with full responsibilities for implementation of Public Distribution System (PDS) from the early 1980s. The Cooperative Movement proved its worthiness by successful implementation of PDS in the state which was rated as best in the country during 1990. The total number of Primary Cooperative Societies functioning in 25 districts is 1,166 having a total membership of 87,549. The number of Multipurpose Cooperative Societiesand Agriculture & Allied Societies are 468 and 172 respectively which have made these sectors most prominent in the State. Papum Pare district has the highest number of Multipurpose Cooperative Societies (240) and Kurung Kumey district has the highest number of Agriculture & Allied Societies (67). Handloom Textile & Weavers Cooperatives are catering to the highest number of members (31,657) through 57 societies. The State Government is planning to promote the Cooperatives in Tourism and Education sectors as well. The cooperatives have now started to provide Home-Stay facilities for the tourist and to show case the traditional way of life and provide local food and drinks (Specially in the Ziro valley of Lower Subansiri District and Tawang District). Rural areas are deprived of good and proper education. Education cooperative societies are being promoted to impart quality education to the students with reasonable amount of admission and tuition fees in the state of Arunachal Pradesh. These cooperative schools also impart computer education in rural areas.