In Prince Edward Island, all diabetic inhabitants who register annually with the Provincial Department of Health can obtain prescribed hypoglycemic medications and urine testing materials free of charge. Since 1964, this drug program has served as an informal register of the diabetic patients living on the island. Based on the data available, the following observations are made: (1) The prevalence rate of diabetes increased from 0.89% in 1966 to 1.53% in 1977. The prevalence rates increased from 0.05% in the less than 9-yr age group to 8.4% in the greater than 90-yr age group. The prevalence rate of diabetes among school children was 0.19%. (2) The incidence rate was 1.89/1000 in 1977. The highest incidence rate was in the greater than 40-yr age group and the lowest in the less than 10-yr age group. (3) Fourteen and a half percent of the diabetic persons were treated with diet alone, 52.7% with oral agents, and 32.5% with insulin in 1977. (4) In 1978, the cost per diabetic person for providing benefits was: oral agent = $14.88, insulin = $84.75, urine testing materials = $9.29, and education = $38.08.