Statewide efforts by the California Department of Alcohol and Drug Programs to secure third-party payments for nonhospital alcoholism services gradually dissolved due to changes in political administration and overall priorities. San Mateo County, however, served as a demonstration county for the effort and has continued to explore third-party reimbursements for nonhospital alcoholism and drug addiction treatment programs through the San Mateo County Third-Party Project. The San Mateo County Alcohol and Drug Program became actively involved in the solicitation of employee assistance program referrals and hoped to market services through the San Mateo Consortium which would include social model alcohol and drug detoxification, outpatient alcohol and drug treatment, and residential alcohol and drug treatment. Program development and implemetation involved a three-phase process of information gathering and identification of obstacles to implementation, pre-marketing preparations, and actual implementation. Initial efforts were focused on businesses and unions with a minimum of 100 employees living or working in the county and that possessed appropriate insurance coverage. The Third-Party Project is currently receiving the first wave of client referrals. Several contracts between providers and union trust funds are in negotiation. A detailed analysis of preliminary results is planned. (NB)