COOPERATION BETWEEN UNITS OF LOCAL GOVERNMENT THROUGH AGREEMENTS AND SERVICE CONTRACTS IS VIEWED BY CITY AND COUNTY OFFICIALS AS AN IMPORTANT MEANS FOR IMPROVING GOVERNMENT PERFORMANCE. INTERLOCAL COOPERATION IN TEXAS RECEIVED A MAJOR BOOST IN 1971 WHEN THE 62ND TEXAS LEGISLATURE ENACTED A GENERAL ENABLING ACT WHICH PROVIDES BLANKET AUTHORITY FOR THE INITIATION OF AGREEMENTS FOR ACTIVITIES THAT EACH PARTICIPATING GOVERNMENT IS AUTHORIZED TO CONDUCT ALONE. THIS HANDBOOK, DESIGNED TO PROVIDE GENERAL INFORMATION ON INTERLOCAL CONTRACTING AND TO SERVE AS A PRACTICAL GUIDE FOR THE PLANNING, NEGOTIATION, AND EXECUTION OF AGREEMENTS, WAS BASED ON A 60-PERCENT RESPONSE TO A QUESTIONNAIRE SENT TO GOVERNMENTAL UNITS THROUGHOUT TEXAS TO DETERMINE THEIR CURRENT CONTRACTUAL ARRANGEMENTS AND PROBABLE FUTURE NEEDS. ESSENTIAL CCONTRACT PROVISIONS INCLUDE THE NATURE OF THE ARRANGEMENT, WORK TO BE PERFORMED, LIMITATIONS, FINANCING, ADMINISTRATION, FISCAL PROCEDURES, PERSONNEL MATTERS, PROPERTY ARRANGEMENTS, DURATION, TERMINATION, AND AMENDMENT. STEPS RECOMMENDED FOR NEGOTIATING AN INTERLOCAL CONTRACT ARE DESCRIBED. EXAMPLES OF INTERLOCAL GOVERNMENT CONTRACTS DEAL WITH THE GENERAL AREAS OF ENVIRONMENTAL QUALITY; PUBLIC SAFETY; HEALTH, HOSPITAL, AND AMBULANCE SERVICES; PARKS AND RECREATION FACILITIES; LIBRARY SERVICES; PUBLIC HOUSING; AND ADMINISTRATIVE AND MANAGEMENT SERVICES. FOOTNOTES AND CHARTS ARE INCLUDED. APPENDIXES CONTAIN A SUMMARY OF STATE LAWS AUTHORIZING INTERLOCAL COOPERATION AND AN ARTICLE FROM THE INTERLOCAL COOPERATION ACT. (RCB)