This paper provides a comprehensive, overview of Canadian child care in 1995. It describes the purposes served by child care and illustrates how they advance social and economic objectives; identifies concerns with current funding arrangements; documents the problems of lack of sufficient child care and affordability; discusses inadequate wages and working conditions in child care; and presents a framework for action by the federal government. It identifies options for development of a child care system, funding options, and issues related to national criteria for child care services.