The type of planning needed for computerization is examined, and a detailed planning process outlined. This discussion emphasizes that automation by computerization can be achieved only if existing manual systems are functioning effectively. The hardware and software used by small and medium sized communities across the country are described. The report recommends developing a Request for Proposal (RFP) for software first and not opening bids for hardware until proposals for software have been narrowed down to one or two. Also recommended is a mutual aid agreement among the three communities that includes the sharing of information and computer systems. The appendixes include a sample RFP from Utah, a matrix of software companies, a communities' demographic profiles.