A rationale and relevant information for dealing with interstate reciprocity and resource sharing in higher education are provided with a focus on western states. The educational needs of the West continually change, and new options to meet such needs must be examined. Background materials for states to use in considering and designing expanded reciprocal interstate relations and exchange mechanisms are presented. Topics of four chapters are as follows: (1) reciprocity as a concept and reciprocity in action (state goals for higher education and roles for reciprocity); (2) student exchanges based on reciprocal tuition reductions (tuition reciprocity in the west, the "Academic Common Market" agreement among the states of the Southern Regional Education Board, and the "Regional Student Program" of the New England Board of Higher Education); (3) the context for reciprocity in the West: population trends, enrollments, and student charges; and (4) state student residency requirements and patterns in student movement among and between western states. Appended are state policies for resident and nonresident tuition status. Includes 23 tables. (SM)