The author describes the impact that implementation of California's new mental health law and of its amendments has had on the development of community mental health programs. The new legislation has acted as a catalyst to the growth of local mental health programs by providing restrictions on involuntary treatment as well as fiscal incentives for local programs. The effect of the legislation on patients has varied according to patient needs and the resources available in the community. Although the problems and controversies have arisen regarding the placement of chronic patients, impact on law enforcement, and quality of care, the service delivery system developed in response to the new legislation has resulted in a greater emphasis on crisis intervention, greater visibility of direct services, and increased community awareness and concern regarding mental health. The author concludes that mental health laws can become the catalyst for major changes in the mental health services delivery system.