Through this report, the Council of State Governments, in conjunction with the Academy for Contemporary Problems, attempts to shed new light on the problem of the placement of children in out-of-state residential care. The report describes the results of a pilot feasibility study conducted in Illinois, North Carolina, and Texas to determine the accessibility, retrievability, and reliability of certain types of data related to issues associated with the interstate placement of children. A number of different questions were discussed in the process of the study: the number and types of children involved; the circumstances under which they are placed; the total cost of placements; the legality of the practice; and the effectiveness of interstate compacts, licensing laws, and other statutes intended to safeguard the rights and well-being of children. The report includes sections on the following: a review of methodological issues associated with the study; a review of relevant research literature; a description of the law surrounding interstate placements; a description of the nature of interstate compacts; a digest of the case studies of Illinois, North Carolina, and Texas; a discussion of issues concerning data collection problems; and recommendations for a national study. This study documents what records are likely to exist, what information is not retrievable, and what the best sources are for each data element needed for successfully conducting a national study of interstate transfers. Suggestions are offered which could improve practices and policies affecting interstate placement. (Author/SS)