The Swedish Mental Health Reform of 1995 was intended to expand community services, improve inter-organizational co-operation between welfare agencies, and achieve goals of social participation for the mentally ill and disabled. The implementation of the reform was characterized by weak legal steering mechanisms and a strong commitment to transform norms. Time-limited economic incentives at the local level and efforts by enthusiastic key persons were salient traits. The result indicates that community-based services such as supported housing and rehabilitative methods have increased. However, inter-organizational co-operation is still difficult, and traditional norms according to which people with mental health problems are seen as ill rather than disabled remain intact.