Despite the importance of the state role in health manpower, past studies have documented fragmentation of effort, isolation of health manpower planning from other health policy channels and a relatively low level of interest in manpower issues on the part of state and local health planners. In evaluating the current capabilities of state level agencies to undertake increased responsibility for health manpower planning, this paper: 1) assesses the level of interest and involvement of state health planning and development agencies (SHPDAs) in health manpower planning; 2 (examines health manpower policy issues in states as evidenced in state health plans; and 3) describes the policy environment in which state health manpower planning is currently conducted.