Introduction and Aims: There are a number of tools to assist services to measure their capacity to respond to co-occurring substance use and mental health disorders.This study aimed to examine whether services could accurately self-rate their dual diagnosis capacity. Design and Methods: Data were collected from 13 alcohol and drug services across Australia that participated in a comorbidity capacity building initiative.The organisations provided a range of services, including pharmacotherapy and counselling services, residential and outpatient services, youth and adult services and withdrawal. There was a mix of government and non-government services. Results: Services rated themselves substantially higher than the independent raters at both baseline and follow up. Discussion and Conclusions: The results suggest that services may not accurately assess their own capacity. For organisations trying to make improvements in their services, independent assessment may be more helpful than self-assessment in accurately determining service gaps. Overestimation of capacity may lead to failure to address important service needs. �� 2009 Australasian Professional Society on Alcohol and other Drugs.