THE BASIC PROJECT STRATEGIES INVOLVED MITIGATING GANG FEUDS AND PROVIDING POSITIVE ACTIVITIES FOR GANG MEMBERS. TEN LEADERS FROM SEVEN GANGS WERE HIRED AS CONSULTANTS TO WORK WITH YOUTH AUTHORITY STAFF IN DEVELOPING SOLUTIONS TO GANG ANTAGONISM. THE GANG CONSULTANTS, ALONG WITH OTHER GANG MEMBERS, COMPRISED A FORUM WHICH SERVED AS A COMMUNICATION VEHICLE THROUGH WHICH GANG CONFLICTS COULD BE RESOLVED OR LESSENED. BY SEPTEMBER 1977, EACH OF SEVEN GANGS WORKING WITH THE PROJECT BEGAN, WITH THE AID OF THE STAFF, TO FORM BARRIO (NEIGHBORHOOD OR TERRITORIAL) ASSOCIATIONS FOR THE PURPOSE OF INVOLVING GANG MEMBERS IN POSITIVE ACTIVITIES. RECREATIONAL ACTIVITIES WERE USED TO MAKE THE PROJECT AND ITS GOALS KNOWN TO GANG MEMBERS AND TO BRING ABOUT POSITIVE INTERACTION BETWEEN THE GANGS. MAJOR ACCOMPLISHMENTS INCLUDE THE RESOLUTION OF ONE MAJOR FEUD AND THE NEGOTIATION OF TWO ADDITIONAL PEACE AGREEMENTS BETWEEN FEUDING BARRIOS. THE OUTCOME EVALUATION ANALYZED HOMICIDE AND OVERALL VIOLENT CRIME RATES AMONG GANGS AND BETWEEN GANGS AND NONGANG MEMBERS. RESULTS INDICATE THAT DURING THE FIRST 11 MONTHS OF THE PROJECT'S OPERATION, THERE WAS A RELATED REDUCTION OF 15 PERCENT IN GANG-RELATED HOMICIDES, WHICH HAD BEEN INCREASING FOR 3 YEARS. A 60 PERCENT REDUCTION IN BETWEEN-GANG HOMICIDES WAS ALSO NOTED. HOWEVER, THE NUMBER OF GANG-RELATED VIOLENT INCIDENTS CONTINUED TO INCREASE SLIGHTLY. NONVIOLENT CRIMES WERE NOT EXAMINED DUE TO A LACK OF ADEQUATE DATA. TABULAR DATA AND A MAP OF THE BARRIOS ARE PROVIDED. (KBL)