This is the third document in the Education and Human Resources Consortium's Series on Collaboration. Initiated in 1988, the Consortium is a loosely-knit coalition of 24 national organizations whose shared goal is for more responsive delivery of education and human services to children and families. This Series is designed to bring resources that make a significant contribution to the study and practice of collaboration to a wide audience. By providing such resources, the Consortium hopes to foster dialogue and constructive action. This guide uses a question and answer format to help state and local policymakers consider how best to foster local collaboration that truly benefits children and families. Chapter 1 answers questions about the definition and purpose of collaboration. Chapter 2 discusses questions relating to state roles and strategies in fostering local collaboration. Chapter 3 explores additional issues: the role of the private sector, possible negative consequences of collaboration, and collaboration's role in the overall context of improving child outcomes. The conclusion summarizes the most critical observations made in addressing the questions in other chapters. Checklists are provided to help policy makers quickly assess key issues in establishing inter-agency initiatives, demonstration projects, and statewide reforms. Resources that offer additional insights on collaboration and provide examples of exemplary initiatives are referenced in the appendices. (LLL)