The primary goal of an Interactive Research and Development (IR&D) project is to encourage teachers to begin to use research findings and practices in their teaching and to develop some basic inquiry skills which they may used as a means of solving educational problems. Secondary goals are to enable teachers and researchers to study a specific question of interest to them, and to provide participants the opportunity to engage in a meaningful professional development activity with educators from other role groups. A final goal of an IR&D project is to generate useful research which when disseminated will benefit the educational community. This paper describes the steps for developing and implementing an IR&D project within a limited budget. The basic foundation of such a project is teamwork between teachers, researchers, and staff developers. The roles and responsibilities of each of these participants are described. Following a discussion on the nature and objectives of the collaboration of team members, a description is given of the IR&D project conducted at Texas Tech University which was developed and implemented in 1980 and terminated in 1982. (JD)