This paper discusses the outcomes of a study that examined local response to the implementation of the least restrictive environment (LRE) provision for preschool children with disabilities within two counties in New York State during the 1994-97 school years. Open-ended interviews were conducted with four groups in each county: Committee on Preschool Special Education Chairpersons, County Representatives, Preschool Special Education Directors, and Head Start Directors. County A and B identified three factors as influential in the implementation of LRE: (1) state policy, (2) cost, and (3) organization of the Committee on Preschool Special Education. County A viewed the 1996 legislative changes as influential in affecting positive changes in the delivery system. Although the county representative was responsible for the costs of preschool special education, all reaming groups in County A recognized the influence of cost in the implementation of the LRE mandate. All four groups in County A perceived a conflict of interest in the role of the evaluator at committee meetings. Some interviewees in County B viewed the 1996 legislation as a top-down state initiative, the cost was not viewed as influential, and the role of the evaluator was not perceived as a conflict of interest. (Contains 153 references.) (CR)