This guide is designed to answer questions about cooperation/collaboration between Head Start and local school districts. Relevant sections of the Individuals with Disabilities Education Act and the regulations implementing it are cited, along with regulations of the Department of Health and Human Services concerning the Head Start program, and Arizona regulations. These regulations focus on least restrictive environments, continuum of alternative placements, school district responsibility for provision of a free appropriate public education, and public agency responsibility for paying costs of special education and related services. Guidelines are offered for making decisions concerning mainstreaming and for using the Individualized Education Program in placement decisions. Information is also presented on determining eligibility for federal and state funds for children who receive special education services within a Head Start program. The guide contends that Head Start provides some services which school districts do not generally provide, and offers an opportunity for school districts to expand the continuum of placement options. Cooperation between Head Start and local education agencies is seen as yielding programmatic benefits to children and families, fiscal benefits, and compliance benefits. An appendix contains a sample memorandum of understanding and suggestions for collaboration between Head Start programs and local school districts. (JDD)