We used the Longitudinal Study on Aging, a national study of community-dwelling elderly people, to 1) estimate the number of elderly persons with arthritis, with and without other chronic conditions, living in the community in 1984, who reported limitations in physical activities, activities of daily living (ADL), and instrumental activities of daily living (IADL); 2) enumerate the population of the elderly with arthritis who were receiving help or paid help with ADL or IADL; and 3) estimate the number of such persons experiencing a change in health status in the ensuing 2 years. In 1984, 14% of all 15.6 million community-dwelling elderly people had arthritis and no other chronic conditions; 41% had arthritis concurrently with other chronic conditions. Of the former group, 66% experienced limitations in physical activities, but only approximately 25% reported limitations in ADL or IADL in 1984. Among the group with arthritis and other chronic conditions, 82% were limited in at least 1 physical activity, and 41% were limited in ADL. With the passage of 2 years, 2% of elderly persons with arthritis and no other conditions had entered a nursing home, 7% had died, and the percentage reporting no limitation declined significantly. Among elderly persons with arthritis and other conditions, 4% entered a nursing home, 12% died, and the rates of all forms of limitation increased. It is essential to gather data such as these, on the prevalence and incidence of limitation among the elderly with arthritis, to ensure adequate long-term care services for an increasing aged population.