This resource guide provides a rationale for collaboration among social agencies and answers some of the questions about cooperation and collaboration between Head Start programs and local school districts. Steps in the process in developing interagency agreements are outlined to assist local education agencies and Head Start programs in developing their own agreements for the benefit of everyone, especially children with special needs and their families. Programs in Wisconsin provide the examples and case studies of collaborative efforts used throughout this resource book. The guide first provides rationales for collaboration between Head Start and local education agencies, noting that such cooperation can: (1) enhance functional skills, promote learning for children with diverse developmental levels, and increase social competency; (2) provide opportunities to better address the comprehensive needs of children and their families; and (3) provide shared resources to develop a comprehensive and interconnected service delivery system. The stages of collaboration are then addressed, followed by descriptions of areas for collaboration and potential strategies to address each area. Next, the guide discusses practical applications of Head Start as a placement for disabled children and the use of Individualized Education Programs for such children. Finally, the guide answers commonly asked questions about agency collaboration in several areas, including financial responsibility and staff qualifications. Appendices include: (1) a sample of the joint agreement between the Department of Public Instruction and Head Start of Wisconsin; (2) criteria comparison chart for Head Start eligibility; (3) questions and answers related to the multi-team process for preschoolers with exceptional educational needs; (4) a description of the Merrill (Wisconsin) Little Learners' Head Start and Merrill Area Public Schools' Exceptional Education Needs Inclusion Model; and (5) a bibliography on collaboration. (WP)