This report describes and evaluates a system of day care for 659 children in seven southern states (75 percent of the children were preschoolers and infants in center programs, 12 percent were preschoolers in family day care homes, and 13 percent were school-age children, primarily in center programs). Most of the families served were low-income. Assessments of cognitive, social, emotional, motor, and hygiene/self-help development were obtained regularly for most of the children by observing their behavior on a series of developmental tasks. The programs in the system focused on maximizing children's total growth and development, increasing the involvement of the family and community, and providing families with supportive services. Parents were encouraged to help plan programs and become participants on advisory boards. Day care staff members were either inservice trained or had completed a two-year college curriculum. Included is a discussion of the project proposal for each of the seven states' demonstration day care projects, an account of how each project was implemented, and project goals and accomplishments. (BRT)