Rural highway capacity, level of service, and other planning criteria are based on outdated information from the United States where the operating environment and traffic conditions are often quite different from those in Canada. Much of the information on rural two-lane highway overtaking and capacity in the 1965 Highway Capacity Manual (HCM) can be traced to data collected as long ago as 1938. Rural two-lane highway capacity and overtaking concepts in use today have remained essentially unchanged since they first appeared in the 1950 Highway Capacity Manual.This paper presents the findings of an investigation into speed–volume relations, platooning, and overtaking on the primary two-lane rural highway system in Alberta, British Columbia, and the National Parks.The principal findings are: (i) there is little relation between speed and volume over the range of volume observed — up to 1700 vehicles per hour, (ii) the average speed at 1000 vph was found to be 20–25 km/h higher than that predicted in the HCM, (iii) the backward bending portion of the speed–volume curve was not observed, (iv) speed distributions at flow rates of 1200 vph showed a marked increase in speed over that in the HCM, and (v) speed distributions of free-moving vehicles indicate a higher proportion of vehicles travelling at uniform speed.The implication of the findings is that the level of service on two-lane rural highways is much higher than that given in the HCM. This, however, is not the case on most of the primary two-lane highway system in western Canada. Despite low volumes, in the 2500–5000 average daily traffic range, drivers perceive a low level of service. This is attributed to a high proportion of long distance (over 300 km), high-speed trips, in rolling terrain with restricted sight distances, through sparsely developed territory with few intermediate stops. Thus motorists spend most of their journey travelling in high-speed platoons resulting in a high driver workload and a propensity to take risks when overtaking.The paper concludes with a recommendation that a nation-wide effort be mounted to collect speed–volume, headway, platooning, and passing data over the full range of highway operating conditions on a year-round basis. A second recommendation is that provincial highway departments in Canada investigate the concept of platooning and opportunity to overtake for evaluating their two-lane highways. More attention should be given to the education and testing of drivers in the skills of overtaking on rural highways. Also proposed is an evaluation of currently accepted, safe passing sight distances, which may be inadequate for the current operating conditions and traffic mix. Alternatives to four lanes, such as alternating passing lanes with early warning signs (to inform the driver of overtaking opportunities a specified distance ahead in order to reduce driver frustration and prevent dangerous passes), need evaluation as well. The paper concludes with a comment on the possible impact of lower speed limits and vehicle control devices, such as the cruise control, on platooning, overtaking, and level-of-service measurement.