We describe a case study in the application of {\em symbolic machine
learning} techniques for the discovery of linguistic rules and categories. A
supervised rule induction algorithm is used to learn to predict the correct
diminutive suffix given the phonological representation of Dutch nouns. The
system produces rules which are comparable to rules proposed by linguists.
Furthermore, in the process of learning this morphological task, the phonemes
used are grouped into phonologically relevant categories. We discuss the
relevance of our method for linguistics and language technology