This article highlights the LSTA-grant funded California Local History Digital Resources Project (LHDRP) as a case study of a collaborative statewide program involving three primary groups: cultural heritage institutions, grant funding agencies, and digital library service providers. It explores how the infrastructure of the California Digital Library (CDL) is utilized to preserve and promote public access to digitized local history collections, and discusses challenges and technical solutions to integrating heterogeneous resources into METS-based repositories. Project building blocks are also discussed, including digital object encoding and transmission tools, scanning services, metadata and imaging standards, and training programs. (Contains 41 notes.)