An inground isolator and associated method can provide an electrically isolated break in a drill string using electrical insulating members/isolators that are supported by a housing. During drill string operations, the isolators are subject only compressive forces responsive to both extension (pushing) and retraction (pulling) by the drill string. The isolators can be formed from an electrically insulating material such as a ceramic material. An interchangeable inground tool system is described which integrally serves to provide an electrically isolating gap in the drill string.