Collaboration between welfare and workforce development agencies has increased since the implementation of welfare reform. Federal legislation, state and local policy-making environments, and the capacity of potential partners to serve an agency's clients affect agency collaboration. The following broad approaches to collaboration have been identified: welfare-centered; shared responsibility for work-related services for Temporary Assistance for Needy Families (TANF) clients; and a highly integrated system. Collaboration enables agencies and clients to gain knowledge, access additional resources, reduce duplication of services, offer more comprehensive services, and benefit from complementary skills and services. The following are among 24 strategies that federal, state, and local agencies can take to facilitate agency collaboration: provide guidance, technical assistance, and training on interagency collaboration; disseminate promising strategies and models; pursue joint planning and program coordination through unified plans; use state-level contracts to promote coordination in the delivery system; and develop mechanisms for communicating and sharing client and program information. The debates over reauthorization of TANF in 2002 and the Workforce Investment Act in 2003 will provide opportunities to improve collaboration between the welfare and workforce development systems. Research has identified innovative examples of collaboration at the state and local levels, including examples from Maryland, Ohio, Washington, and Vermont. (Seven resource contacts and 12 references are listed.) (MN)