Discusses how technological developments in libraries have led to the emergence of new service paradigms. Reference services are receiving prime attention as librarians strategically position themselves to serve users who are entering the library both through the physical gateway and the electronic gateway. Recent trends in electronic libraries, with particular reference to academic libraries, point to the need to provide value‐added library services to support virtual communities in their access to, and use of the exploding body of electronic sources. Also discusses the dynamic nature of reference services in the context of rapidly changing technologies and heightened user expectations and explores the issues associated with planning virtual reference services in an academic environment. Outlines the service rationale, software and technology considerations taken by the Pennsylvania State University in planning towards on‐line, real‐time reference services and provides an overview of the planned pilot project. Includes a list of links to Web sites with useful resources as well as links to sites of some projects on virtual reference services.