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3 VARIABLES ARE CONSIDERED AS INFLUENCING DECISIONS OF LOCAL GOVERNMENTS TO MERGE RESOURCES--IN THIS CASE THE FORMATION OF A JUNIOR COLL: (1) FISCAL CONSIDERATIONS, (2) SC SIMILARITY, & (3) TRANSACTIONS, OR SOCIAL INTERACTIONS BETWEEN COMMUNITIES. A CASE STUDY WAS MADE FROM 1963 TO 1967 OF THE HIGHLAND PARK/DEERFIELD, ILL HIGH SCHOOL DISTRICT; ALL 3 VARIABLES WERE INVESTIGATED, WITH SPECIAL ATTENTION TO THE TRANSACTION VARIABLE, WHICH WAS MEASURED BY NEWSPAPER CIRCULATION & CONTENT ANALYSIS. A COMPARATIVE ANALYSIS OF 9 OTHER CHICAGO SUBURBAN DISTRICTS DURING THE SAME TIME PERIOD WAS ALSO MADE. THESE STUDIES SHOWED THAT: (A) CLUSTERS OF COMMUNITIES ARE A MORE BASIC SUBMETROPOLITAN UNIT THAN THE COUNTY, (B) THE LOCAL PRESS PROVIDES A USEFUL MEASURE OF SOCIAL INTERACTION BETWEEN COMMUNITIES, (C) THESE INTERACTIONS TEND TO BE QUITE SELECTIVE, (D) COLLABORATION ON COMBINING RESOURCES IS INHIBITED BY THE LACK OF TRANSACTIONS BETWEEN COMMUNITIES, (E) COMMUNITY FACTORS ARE MORE IMPORTANT THAN FISCAL CONSIDERATIONS IN SCHOOL DISTRICT COLLABORATION, & (F) THE TRANSACTION VARIABLE MAY BE CONSIDERED AS HAVING POWER SEPARATE FROM THE OTHER VARIABLES. 2 TABLES. J. N. MAYER.