The 239 families were reported to CPS in five offices of the New Jersey CPS agency between December 1988 and October 1989 and were followed for an average of 2 years. The cases were closed because the incident was considered to be an isolated incident, it was of lesser severity, the situation leading to the report was resolved by the time the investigation was completed, or the reported maltreatment was unsubstantiated. Caretaker substance abuse was identified from self-reports or case records. Results revealed that 132 of the cases were classified as substance abuse. Results supported the hypothesis that parental drug abuse would have a negative impact on family functioning, which, in turn, would result in a higher rate of subsequent reports of child abuse or neglect. As expected, drug abuse also had a direct impact on recurring reports. Findings indicated that it is critical that the child welfare system recognize and respond to parental drug abuse problems in these families through expanded and improved voluntary and perhaps mandatory services. Figures, tables, and 30 references