The Cooperative Urban Teacher Education (CUTE) Project was initiated in 1967 by the Mid-continent Regional Educational Laboratory (McREL) to design an intensive, field-oriented undergraduate program to prepare effective teachers for inner-city schools. The results is a 16-week program which is conducted during the student teaching semester and which has as its major objectives the development of the teacher's ability to understand the environment, attitudes, culture, insecurities, and prejudices of himself and his students, and the development of teacher competency in inquiry teaching methods. After developing the program, McREL designed a diffusion project in two phases. The objectives of Phase I were to select installation sites and establish CUTE programs using specially trained installer teams recruited from the site staff. Phase 1 evaluation consisted of testing program students and site-visit reports by McREL monitors. All eight sites proved to be operating successful CUTE programs. Phase 2 of the diffusion program utilized the original eight installation sites in further diffusion of the CUTE program to 20 additional universities. Again, evaluation consisted of testing students and on-site reports by McREL monitors. Evaluation reports are positive and show that the 28 sites operate effective programs and that of the almost 2000 graduates, most intend to remain in inner-city schools and almost all are highly successful, according to their supervisors. (HMD)