This publication presents a lengthy study of the intermediate educational unit system in the state of Pennsylvania. Purpose of the study was to describe in a comprehensive manner the programmatic, operational, and fiscal aspects of intermediate units, to examine the significant interactions between intermediate units and other agencies (particularly the Pennsylvania State Department of Education and local school districts), and to recommend possible changes in the intermediate unit system. Data for the study were gathered mainly through a review of relevant state legislation, regulations, and court decisions, through personal interviews with numerous officials from the state department of education, and through lengthy questionnaire packages completed by individual intermediate units, school district superintendents, and school board presidents. (JG)