Community colleges have been playing an important role in promoting adult learning in community since 1998 in Taiwan. However, in the course of development, community colleges have faced many challenges and dilemmas. Four-year universities also meet a changing competitive environment of higher education. The purpose of the study is therefore, first, to explore the mechanism of forming a strategic alliance between community colleges and local universities; second, to analyze the way the two kinds of institutions can cooperate; and third, to find out the possibility of universities awarding credits to community college students. Literature review, interviews, and focus group were employed in this study. It was found that strategic alliance based on cooperation between community colleges and local universities can allow each institution to be more successful in providing good quality of learning environment. Several conclusions and suggestions are generated.