CLOSE PROX GA SMA DOING TRAINING MANEUVERS IN A PRACTICE AREA NW OF PRC AND A SECOND GA SMA TRANSITING THE AREA.

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2 PRIMARY (PRE SOLO) FLT STUDENTS AND I WERE OUT ON A ROUTINE TRAINING FLT ENRTE FROM FLAGSTAFF TO PRESCOTT AND WERE PERFORMING/PRACTICING PRIVATE PLT MANEUVERS AT ALT. FOR ALL MANEUVERS; WE HAD PERFORMED CLRING TURNS TO VISUALLY CLR THE AREA OF OTHER TFC. MY STUDENT ENTERED AND PERFORMED A MIN CTLABLE AIRSPD MANEUVER. WE HAD NEARLY COMPLETED A RECOVERY FROM THE MANEUVER WHEN THE BACK SEAT OBSERVER CALLED TFC AT 10 O'CLOCK. EVERYONE LOOKED AND THERE WAS AN SMA Y BEARING DOWN ON US; SLIGHTLY BELOW US (50 FT MAYBE) AT OUR 9:30 POS. I IMMEDIATELY TOOK CTL OF THE ACFT AND BEGAN A SHARP L HAND TURN FOR ABOUT 180 DEG OF HDG CHANGE. AFTER THAT; I DIDN'T LOOK FOR THE OTHER AIRPLANE; SO I HAVE NO IDEA IF HE EVEN SAW US OR TOOK AN EVASIVE MANEUVER. I WAS VERY SHAKEN UP AS THIS IS THE CLOSEST ENCOUNTER WITH UNKNOWN TFC EVER FOR ME. AT OUR FLT SCHOOL WE HAVE DESIGNATED PRACTICE AREAS FROM PRESCOTT ARPT TO SEVERAL 'OUTLYING' FIELDS TO HELP ALLEVIATE CONGESTION AT PRESCOTT. WE WERE IN ONE OF THESE DESIGNATED PRACTICE AREAS AND NOT IN THE XING PATH OF ANY VICTOR AIRWAYS OR INST APCHS. THE PRESCOTT AREA IS EXTREMELY CONGESTED WITH 4 FLT SCHOOLS; PLUS TRANSIENTS. THE LCL TWR IS A LEVEL II NON RADAR TWR. RADAR IS GENERALLY NOT AVAILABLE BY ALBUQUERQUE CENTER BECAUSE OF ITS SITE AND LCL TERRAIN FEATURES. THE ONLY MEANS WE HAVE FOR COLLISION AVOIDANCE IS SEE AND AVOID AND A FLT SCHOOL AIR FREQ ON WHICH WE ANNOUNCE OUR POS SO THAT PEOPLE LISTENING KNOW WHO'S OUT THERE; WHERE; AND DOING WHAT. UNFORTUNATELY; THE TRANSIENTS AND SOME OF THE OTHER FLT SCHOOLS ARE UNAWARE OF OR DO NOT USE THE FREQ. THIS IS NOT THE FIRST NEAR MIDAIR I HAVE HAD IN MY YR OF FLT INSTRUCTING HERE; NOR IS IT THE FIRST NASA RPT I HAVE FILED INDICATING SUCH. I WOULD GUESSTIMATE THAT IN THE PRACTICE AREAS; I USUALLY HAVE 3 POTENTIAL NMACS A MONTH (WITHIN 1000 FT). IN THE LAST YR; I WOULD SAY 4 OR 5 OF THOSE HAVE BEEN WITHIN 200-300 FT. SO FAR; SEE AND AVOID HAS WORKED HERE AND I STRONGLY FEEL THAT NOTHING WILL BE DONE TO ENHANCE AIR SAFETY UNTIL SOMEONE DIES. MY COLLEAGUES SHARE MANY OF THE SAME FEELINGS. OUR FLT SCHOOL ITSELF HAS 60 AIRPLANES. WHEN YOU ADD THIS TO THE AIRPLANES OF THE 3 OTHER FLT SCHOOLS; PLUS TRANSIENTS THAT AREN'T AWARE OF THE HVY STUDENT TRAINING IN THE AREA; IT IS AN ACCIDENT WAITING TO HAPPEN.