The Individuals with Disabilities Education Act (IDEA) mandates special education and related services to be delivered in the least restrictive environment to preschoolers with disabilities. The act also mandates that educators and administrators find appropriate educational placements for children who are entitled to receive a free public education. This report summarizes findings from a national survey and subsequent case studies related to federal, state, and local policies that present barriers to preschool mainstreaming. Survey and case study respondents cited policy barriers related to interpretations of policies and policy requirements. This paper focuses on Chapter 1 regulations and clarifies the process of including Chapter 1 preschool services in the least restrictive environment for children with disabilities and their families. Definitions in Chapter 1 and the IDEA statute are compared for the following terms: preschool children, educationally deprived children, children with disabilities, free public education, free appropriate public education, and desired outcomes. The intent of each statute is discussed, as are several federal clarifications regarding eligibility and service delivery. It is concluded that under certain conditions, a preschooler with a disability may be placed in a program or class that is funded by Chapter 1 for the purpose of providing the child with an integrated or mainstreamed placement. (LB)