Using a sample of juvenile status offenders who were diverted from a large juvenile system in Arizona, this research evaluated the outcome of three distinct groups of juveniles. The groups were a diverted and treated group (diversion-referral); a diverted but non-treated group (pure diversion), and drop-outs from the diversion-referral group (internal failures). In addition to interview information, offense histories were developed for each subject. This study found that in the process of diverting juveniles away from the juvenile court, new quasi- legal programs emerged in the community to supplement the juvenile justice system. Many of these community programs were subcontracted by the juvenile court. Rather than diverting adolescents with petty offenses away from the court to their family, diversion referred them to community programs. Many community agencies began competing for clients. The result was that a juvenile could end up in a program designed to deal with a problem behavior that did not apply to that particular juvenile. Although diversion programs have the potential to benefit the juveniles referred to them, such programs must be monitored and continually evaluated to confirm that they are cost-effective and are serving the juveniles for which each program is designed. 5 tables and 35 notes