Based on analysis of the current system and comparison with existing and possible alternatives, this report evaluates the effectiveness of the Indiana library cooperative network, a de facto network based on the activities of individual libraries, Area Library Services Authorities (ALSAs), the Indiana Cooperative Library Services Authority (INCOLSA), the Indiana Library Film Service (ILFS), the Indiana State Library, and library associations in Indiana. The first chapter outlines the study background and methodology while Chapter 2 describes the various network components. As a basis for comparison, the third chapter provides background information on network activities and structure in Illinois, Missouri, and New York. In Chapter 4, current and potential network functions are analyzed and alternatives, particularly structural ones, are reviewed. Functions analyzed include interlibrary lending and reference services, cataloging, online information retrieval, circulation, collection development, consulting, education and training, communication and coordination, and planning. The final chapter outlines recommendations for improving the effectiveness of the network components. Appendices present the request for proposal for this study, extracts from Indiana state legislation related to library/information networks, names and addresses of persons involved in the Indiana library network, and a 17-item bibliography. (ESR)