This paper discusses collaboration between institutions of further education (FE) and higher education (HE) in Scotland, governmental policy toward postsecondary education in Scotland, and Napier University's response to these policies. FE in Scotland is analogous to community college education in the United States, providing vocational and transfer programs to secondary school graduates. Recent governmental pressure to increase enrollments at HE institutions with only limited increases in funding has led to an increased emphasis on FE-HE linkages to reduce costs. Scotland's Further and Higher Education Act of 1992 encourages increased collaboration between HE and FE institutions by making their educational programs and course offerings more compatible and centralizing the funding of both types of institutions. Napier University has established closer links with local FE institutions, implementing student transfer agreements and multi-institution programs. Such cooperation will allow institutions in both sectors to increase student intake in targeted areas and at levels that suit them best. Comparisons with the community college-university relationship in the United States are also discussed. (MDM)