As an important step in health care planning for the elderly, a systematic descriptive study of ten psychogeriatric services was undertaken in the United Kingdom. A definite trend emerged of a reduction in the number of hospital beds as community services developed. Health authorities tended to establish a clinical base in general hospitals rather than in mental hospitals. The recent effect of the rapid growth of the private nursing home sector is also described. Some rough guidelines are provided for the basic resources needed to establish a comprehensive service including one assessment bed and one day place per 1,000 elderly persons; the number of long-stay beds depends on the number of places available in the private sector. While the Canadian health care system differs in some fundamental ways from that in the UK, the principles and guidelines derived from the UK experience may be applied to meet the psychiatric needs of the elderly in Canada.