The research gathered information on the size of the drug abusing population, the costs associated with drug abuse, the types of referral programs, and the impact of these programs. England and Wales had between 85,000 and 215,000 problem drug users in 1996 and that the problem user population was 2,000 in Southward, 1,800 in Brighton, and 1,000 in Derby. Drug users raise money in a variety of ways, including shoplifting, burglary, drug dealing, fraud, and sex work. Problem drug users may raise 650-850 million pounds through acquisitive crime. Criminal and drug using careers seem to develop in parallel. Drug abuse also imposes high costs on public services. Arrest referral programs use one of three models: (1) the information model, (2) the proactive model, and (3) the incentive model. The analysis indicated substantial reductions in both drug use and crime following contact with arrest referral programs, although the data need careful interpretation. Nevertheless, findings indicated that arrest referral programs can be effective in reducing drug use and drug-related crime. Essential components of referral programs include a proactive mode of work, a working style that wins the respect and trust of users, adequate resources, appropriate treatment services to which to refer, and other elements. Figures, tables, footnotes, and 26 references