A study of two rural New York counties--Cortland and Otsego--was undertaken to identify innovative ways to provide public passenger transportation services in rural areas by using transportation cooperatives. Information about current transportation services was obtained from staff members of the human service agencies and county government officials in the study counties. Additional data were obtained from the 1980 Census of Housing and Population and the New York State Department of Transportation. Data indicated that in both counties direct transportation costs were substantial, indirect costs in staff time were also significant, and many transportation needs were unmet. According to agency representatives in the study counties, the cooperative is an acceptable form of organization to facilitate interagency coordination. Cooperative alternatives could be responsible for clearinghouse functions, administrative activities, vehicle maintenance and repair, and fleet purchase. Cooperative organizations could be sponsored by the agencies themselves, by a service club, or by a combination of both. There is considerable potential for coordinating passenger transportation services with rural postal delivery routes. A demonstration project for the two-county study areas is recommended to determine the best type of transportation cooperative for the area and the feasibility of using rural postal service routes. (JHZ)