Taking as indisputable the relationship between poverty and mental illness, this paper examines the effect which the War on Poverty could have upon mental illness. Community Action Centers are the specific focus, with their potential for serving low income clients with emotional problems, and functioning as case finders and referral sources for mental health agencies. Data were collected from four centers in a large urban area over a period of two years. The centers were scrutinized with respect to the functions of their Interviewing and Counseling Units: (1) Information/Reception; (2) Intake; (3) Referral; and (4) Followup. In addition, research involved observation of counselor/client transactions, abstraction of information from case files, and surveying of counselor perspectives. Deficiencies were found in: (1) information and decision making systems; (2) operational patterns; and (3) relationships of the centers to their external environment. Findings suggest that Community Action Centers are not recognizing and treating mental health problems and are not serving as case finders or referral sources for mental health agencies. Implications for these agencies are discussed. (TL)