Substantial progress was made during the period 1981-1986 in plasma parameters, physics understanding, and improvement of the stellarator/heliotron concept. Recent advances include (1) substantial achievements in higher plasma parameters and currentless plasma operation, (2) new theoretical results with respect to higher beta limits, second stability region, effect of a helical axis, effect of electric fields on transport, and reduction of secondary currents; and (3) improvements to the reactor concept. The key issues have been further refined, and the short-term direction of the program is clear; a number of new facilities that were designed to resolve these issues are about to come into operation or are in the final design stages. This report summarizes these advances.