It could be stated that the ills of schools today stem from two self-reinforcing causes: (1) the generation and distribution of resources, and (2) the school's inability to sense and service the demands of its clients. One means through which education can become more relevant and responsive to the demands of society and the local community is that of the Educational Cooperative. The Cooperative is a voluntary confederation among school districts, universities or colleges, and the State departments of education to increase local ability to improve education cooperatively. The Cooperative is designed to mobilize the capabilities of the education profession in resolving complex educational problems. Utilizing a problem solving approach, the process emphasizes identification of needs, careful planning of solutions, and rigorous evaluation of results; and provides a new organization unhampered by tradition and institutionalized patterns of behavior. This document outlines the need for such an organization, its administrative system, and the factors and decisions affecting the installation of the Cooperative. (Author)