Although the principal is a vital key in the success of any project involving the school, a variety of constraints interfere with the principal's effectiveness to use interagency collaboration as an impetus for school reform. This paper presents findings of a study that investigated the perspectives of principals toward a neighborhood-based interagency collaboration (CBIC) effort implemented in a large midwestern city from April 1992 to December 1993. A neighborhood interagency team had been formed in two neighborhoods to serve as a clearinghouse, provider, and coordinator of direct services, with a focus on prevention. Data were gathered from observation of all interagency team meetings, and interviews conducted with a total of 36 participants from 8 schools in the 2 neighborhoods--9 principals and project assistants, 3 district-level administrators, 17 interagency team members, 2 parent-school liaisons, and 5 top-level administrators. The principals identified major strengths of the program, its possible goals, limitations, and constraints. Recommendations for meshing CBIC with school reform include: (1) maintain a long-range focus; (2) allocate sufficient time and money for planning; (3) involve all schools in the neighborhood; (4) train school administrators and staff on collaboration; and (5) consider the neighborhood view of community life in choosing the type of interagency collaboration. (LMI)