This issue of the Multi-State Consortium on Performance-Based Teacher Education (PBTE) newsletter focuses on the role collaboration plays in competency-based education programs. A diagnostic test is presented to rate reader knowledge of ten basic concepts of collaboration, and the correct answers are discussed. Wendell C. Allen comments on the role of collaboration in teacher education; while the difficulties of college-school-professional organization cooperation are not overlooked, the benefits accruing from such effort are stressed. A report is made by Richard E. Collier on formal procedures through which policies were formulated and malor recommendations were developed during the Undergraduate Urban Teacher Education Program in New York State. James M. Wallace discusses the evolving importance of performance-based education and performance-based teacher education in Oregon's educational environment and makes projections for the 1980's. (MJB)