The report describes a 1.5-year project to create a comprehensive plan for the development of residential services for persons with developmental disabilities in New Mexico. Findings represent input from advocates, family members, state officials, community representatives, legislators, and local service administrators. Part One of the report describes the context and guiding concepts for the plan, touching on issues of service system design, implementation, and overall goals. An overview of the target population is also presented. Information collected on the incidence and prevalence of developmental disabilities in the state is reviewed, service demands projected, and the current service system described in comparison to other states. Part Two of the report presents the phased objectives that comprise the recommendations for system development and expansion over the next five years. Objectives cover all aspects of implementation, including planning, needs assessment, quality assurance and monitoring, system organization, resource development, management and information, finance, and interagency cooperation. The report includes references, 41 figures, and five appendices (sample survey forms and interview guide, descriptions of levels of functioning and of client services, and information on the Inventory for Client and Agency Planning. (JW)