A product of the Project on Vocational Education Models for Linking Agencies Serving the Handicapped, this handbook is designed to assist state and local level personnel to develop effective linking strategies that will help meet the needs of handicapped students. It consists of 11 chapters. Following an introductory explanation of the purpose and uses of the handbook and related publications, guidelines are presented for establishing and maintaining a local linkage committee. Development of local agreements is covered. Also examined are the roles of the Individualized Education Program (IEP) and the Individualized Written Rehabilitation Program (IWRP) in linkage agreements. In the next three chapters the following local level concerns are addressed: cost considerations in establishing and maintaining interagency linkages, inservice training to implement and sustain interagency linkages, and evaluation of interagency linkages. Guidelines are set forth for implementing interagency agreements. Comprising the final three chapters are discussions of three interagency linkage models in Maryland, New Jersey, and Virginia. (A related status report of interagency linkages at the state level and a description of federal agencies and organizations are available separately--see note.) (MN)