Very well :)  Actually, it depends on your choice of transmission, and 
whether you have the Limited-Slip Differential (LSD) option.  See the 
Traction Adding Devices FAQ <http://www.a1.nl/phomepag/markerink/diffs.htm>
for more general information on these types of devices.

If you have a 2-Wheel-Drive RAV4, then it is powered by the front
wheels only.

If you have 4WD, a full-time system puts power down to all four wheels 
at all times.  Some refer to this as an "all-wheel drive" system, rather 
than 4WD, but AWD usually refers to "reactive" systems that delay 
transfer of power until after slip is detected.  The RAV4 drive system
is most correctly called "Full-time 4 wheel drive."  It is reported that
25% of the engine power is normally sent to each wheel.

- For automatic transmissions, there is a center coupling that 
  detects wheel slip and gradually locks the front and rear axles as 
  the slip increases.  There are no driver controls for this feature.
- For manual transmissions, there is a center differential lock button 
  on the dashboard that manually locks the front and rear axles.  When
  engaging, an amber "C. Diff Lock" indicator lights on the dashboard.
  When disengaging, there will be a beeping sound until the center
  differential is fully disengaged; it may beep just once, or may
  beep for as much as a full minute (seems to beep longer when cold).
  Toyota recommends that it only be used only in difficult situations, 
  and that the center differential can be damaged if used improperly.
- For 4WD vehicles, there is an optional rear LSD available.   In 1996
  and 1997 model year, it was available only on standard transmission
  models, but starting in 1998, the rear LSD is available in all 4WD models.
  This device is called a "Torsen-type" LSD by Toyota, and is one of 
  the most sophisticated and effective types available.  It automatically 
  detects wheel slip by either rear wheel and redirects the most power 
  to the wheel that is slipping the least.  There are no driver controls 
  required for this device.