This pilot project was designed as a collaborative effort to serve substance abusing women and their young children. The goals were to improve the health and welfare of these families by early identification of pregnant substance abusers; improve access to and coordination of health care services and chemical dependency treatment; and provide family-focused early intervention services. This report emphasizes the process evaluation and focuses on issues surrounding program implementation during the first service year. Three pilot sites served 194 women and their children. Key findings include: (1) more than half of the women were over age 25 and 73% were Caucasian; (2) over 80% of the women received chemical dependency treatment services; (3) the majority of women reported conventional parenting attitudes; (4) most understood the dangers of drug use; and (5) less than half said they were able to handle their problems. Several factors were identified as critical to the successful implementation of the pilot program. What these factors had in common is that they all improve or enhance communication among the service providers. Sharing information and conducting staff and community meetings all helped build the team approach at the state and community level. (Contains 11 appendixes and 24 references.) (JDM)