There is growing consensus among early childhood professionals about the importance of early childhood transition services (activities designed to ensure continuity for young children across different environments, including homes, child care settings, preschools, and schools). Providing such services requires collaboration and linkages among families; preschools, including child care and Head Start programs; schools; and health and social service providers. Increasingly, preschool children are participating in out-of-home early care settings very different in philosophy and practice from public schools. As kindergartens have become increasingly academic, many children experience early failure that may compromise their future success. Though research suggests that children benefit from transition activities, transition programs are rare. Turf issues, resistance to change, and issues of funding often exacerbate the failure of preschools and schools to communicate or collaborate. Successful transition services share several characteristics, including developmentally appropriate practices, parent involvement, and a continuum of family-focused and community-based services. When designing transition policies, states should consider convening state-level working groups of agency heads and other stakeholders and providing incentives for collaboration and local transition services. (Information on existing state policies, projects, and local models are included. Contains 57 references.) (AC)