A model is provided for local schools to follow in developing a cooperative and active agreement with the local vocational rehabilitation agency. Information is provided from a joint memorandum from the Commissioners of Education and Rehabilitation Services at the federal level to assist local educational agencies in developing their own policies and procedures. Examples taken from the same memorandum are used to illustrate the types of special education, vocational rehabilitation, and vocational education services that can be provided to handicapped students. Establishing lines of communication between the agencies is stressed as an important first step. Five steps are then suggested for the development of the cooperative agreement: (1) hold an initial meeting, (2) form a cooperative service agreement, (3) implement the cooperative service agreement, (4) follow up the meeting, and (5) establish a school year-end meeting. Appendixes, amounting to over one-half of the publication, include a local cooperative agreement and a state (Maine) cooperative agreement. (YLB)