Beginning with a description of the educational needs and resources of Quincy, Illinois, this report examines the establishment and operation of John Wood Community College (JWCC), an institution using the educational service contract to offer quality instruction without duplicating the services of other colleges in the area. After the legal basis for this "common market" system is presented, the process whereby students are admitted, counseled, registered, and given financial aid through JWCC but actually attend one of the public or private postsecondary institutions in the tri-state area is explained. Then, the advantages of the educational common market to the residents of the district are enumerated, including the student's ability to take classes at the institutions which best meet his/her need, the affordable $12 per unit which the student pays, the availability of the Open Learning Center for self-paced, individualized instruction, and the accessibility of Project Outreach Centers. Next, the benefits to the contracting institutions are identified and a recent cooperative program between JWCC and a local industry is described. The future of community-based contractual education is then assessed with special emphasis placed on the successes evident in JWCC's operation. Finally, a checklist of factors to consider in adapting the contractual model is provided. (AYC)