The paper will address the spreading and different effects of educational institutions in the jurisdiction Kanal in the second part of the 19th century. Until 1874, only two primary schools were active in Kanal (The Princely County of Gorizia and Gradisca). Considering the educational infrastructure and personnel, the district (especially higher areas – Banjšice, Kanalski kolovrat) was behind the county’s average in the initial period of Austria-Hungary. The modern school system was set-up with the gradual establishment of new schools at the end of the 1870s. Changes appeared with the Imperial Primary Education Act of 1869, which modernized the school system. The network of schools was expended, and by that the compulsory school covered the entire jurisdiction. In 1890, the number of schools increased to 17. The paper will research how the arrival of schools and personnel to this place/municipality influenced people’s lives, and the development of cultural and economic industry. Also it will compare the lower lying areas with the higher areas, where the educational system was set-up with a delay in the 1880s. The lack of education and illiteracy, which were the result of a relatively late arrival of educational institutions, have contributed to a poor response on the changing economic conditions and various crises, which affected Kanal in a greater extent than other parts of the county.