Described is the development of the Regional Education Assessment Diagnostic Services (READS) project, a collaborative organization of 20 Massachusetts school districts which would enable the districts to provide the diagnostic services mandated by recent state legislation for children having special needs. Among topics covered are the legislative basis for the development of READS, community efforts to provide the requisite financial support, the formation of a governance structure, and the staffing and organization for operation during the l974-75 school year. The final section contains evaluative judgements of the program obtained from parents and school professionals, and includes a case history demonstrating the sensitivity of READS to the handicapped child. The bulk of the document consists of appendixes which include a copy of Massachusetts legislation (Chapter 766) which requires that communities provide special education programs for children with special needs, an outline of student records regulations, and professional and parental evaluations of the project. (SB)