The authors describe an innovative program designed to create a joint university and local municipality agency in Israel. The agency was structured to be a teaching laboratory that would offer innovative services for social work clients and a unique field placement for students. Four major goals involved joint outcomes for both university and municipality. These included (a) demonstrating evaluation research as a means of accountability and as a tool for practice; (b) using generic social work methods for work with families; (c) reaching out to difficult and high-risk clients with innovative programs; and (d) using the laboratory as a training center for welfare workers, agency supervisors, and students from all levels of the social work programs. The authors describe and evaluate each of the goals, discussing the implications for teaching and for social work practice.