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The Pennsylvania Academic Library Consortium, Inc. (PALCI) is partnering with the Private Academic Library Network of Indiana (representing 94 academic libraries in Indiana, Pennsylvania, New Jersey, West Virginia, and New York), to explore, develop, and pilot an open source, multi-tenant, consortial institutional repository (IR). The model should deliver ultra low-cost hosting, discovery, and access to digital material for member libraries. Ultimately, project collaborators aim to create a consortial IR service individual libraries may use, customize, and brand as their own, while building the capacity and functionality required to share underlying infrastructure, hosting, and administration costs across institutions. Partnering organizations will build member libraries' capacity to serve their communities with access to digital collections by reducing IR-hosting and administration costs through shared infrastructure.