Based on fiscal year 1986 annual reports from 48 states, Guam, Puerto Rico, and the Virgin Islands, this report describes interlibrary cooperation and resource sharing activities supported by the Library Services and Construction Act (LSCA), Title III, funds. In response to the 1984 amendment to Title III (which required each state to include in its long-range planning a statewide resource sharing plan identifying interlibrary and resource sharing objectives), states reported the following activities: (1) the planning and evaluation of statewide automation programs for resource sharing; (2) the establishment and maintenance of computerized holdings lists of serials and monographs using the OCLC online database for bibliographic descriptions; (3) the conversion of bibliographic holdings to machine-readable records; (4) the automation of circulation and resource sharing systems; and (5) training and continuing education programs for planning and implementing technology-based activities and services. In addition, excerpts from selected annual reports provide brief descriptions of specific projects in the areas of planning and evaluation, network management, expanded support of communication networks, document delivery systems, converting bibliographic holdings to machine-readable records, automated circulation and resource sharing systems, continuing education, and staff development. (SD)