Abstract
The paper summarises some of the main results of a study of inter‐agency collaboration in the provision of community mental health services in one city in Britain. The research was based on interviews with service purchasers and providers in health, social services and the voluntary sector. The results suggest that, in spite of cordial working relationships and a historically stable organisational structure, collaboration between agencies in the provision of mental health services was being seriously damaged by contradictory central government policies of tight operational control yet fostering internal markets in purchasing and providing. It is recommended that research is urgently needed to assess the impact on vulnerable clients’ quality of life and level of functioning of changes in inter‐agency collaboration forced by the introduction of internal market mechanisms.