The development of the Ontario university system from 1975-76 to 1977-78 is traced, with focus on the deteriorating financial situation of the past few years and the impact of recently declining enrollments. The growth of cooperative activities among the universities has included the planning of graduate programs, library cataloging, instructional development, and admissions. The current state of the Ontario universities and future prospects bring to discussion uncertainty over finances, enrollment, staffing, the adequacy of structures for planning, and the role of universities in general. In addition to the decline in the overall level of funding relative to costs, there have been important changes in the distribution of the funds among the different institutions. The changes have been brought about mainly by modifications in the formula distribution mechanism but also, to a lesser extent, by changes in the system of nonformula grants. Tuition fees are involved also. Developments in graduate level planning in Ontario are discussed to illustrate and define in part the pros and cons of cooperative planning and voluntary association of the autonomous universities. Background information about the membership, constitution, committees and affiliates, financial statements, and a list of publications of the Council of Ontario Universities are included. (SW)