The policy context for both welfare programs and employment and training programs operated by the workforce development system has changed dramatically in the past few years. This study provides a current description of local operational interaction between welfare and workforce development programs. It is based on a review of the literature and site visits to twelve localities in six states. The study identifies different approaches to coordination, the advantages of coordination for clients, and factors that promote and impede coordination. Key findings include the importance of past relationships and local conditions in shaping models of coordination. Successful coordination models require time and energy on the part of agency staff over a sustained period.