The need for statewide coordinating agencies has become more evident as the number of junior colleges within each state continues to grow. These centralized agencies can assist in reducing unnecessary competition and duplication among junior colleges, and can improve the coordination of statewide educational needs with those of the individual institution. In developing a productive relationship between the coordinating agency and the junior colleges, some of the more important considerations are: precise definition of coordinating agency role and authority, recognition of mutual interdependence, and standardization of actions. Guidelines by which the agency staff operates in coordinating and implementing activities with the junior colleges can be seen as authority placement, institutional autonomy, institution-agency cooperation, and institution-agency conflict. Councils of institutional representatives improve the coordinating process by serving as forums providing feedback from the college to the coordinating agency. In conclusion, central agency practices that could insure coordination of the cooperative system and maximum feasible institutional autonomy include the development of a master program plan, a uniform accounting manual, and agreements with other institutions of higher education. A bibliography is included. (JO)