An Interlocal agreement is used when a district is performing for or receiving a service from a local governmental entity, i.e.: a city, a county, or education service center (ESC). These agreements are pursuant to the Interlocal Cooperation Contracts Act, Chapter 791 of the Texas Government Code. The provision is designed to increase the efficiency and effectiveness of local governments by authorizing them to contract with each other. The local health authority and the local ISD, for example, may execute an interlocal agreement providing for the use of school district facilities to dispense medications during a pandemic. Interlocal agreements typically require board approval.

The sample interlocal agreement below is between two governmental entities – the health department and the school district. It is detailed and clearly specifies the responsibilities or obligations of the parties in a public health emergency.