Various approaches to evaluating community mental health services are presented. Cost-effectiveness analysis is discussed in terms of its relation to evaluation, and several types of relevant economic variables are described. Some problems in evaluating community mental health services are discussed. The major section presents specific approaches to evaluation, which are classified according to whether they are concerned with program structure, program process, or program outcome. Program outcome studies (in conjunction with process analyses) that include consideration of economic variables are viewed as most desirable, although the difficulties associated with performing such studies are recognized.