The effects of chain disorder on superconductivity in YBa2Cu3O 7−δ are discussed within the context of a proximity model. Chain disorder causes both pair-breaking and localization. The hybridization of chain and plane wavefunctions reduces the importance of localization, so that the transport anisotropy remains large in the presence of a finite fraction δ of oxygen vacancies. Penetration depth and specific heat measurements probe the pair-breaking effects of chain disorder, and are discussed in detail at the level of the self-consistent T-matrix approximation. Quantitative agreement with these experiments is found when chain disorder is present. 74.25.Ha,74.25.Bt Current understanding of the low energy electronic excitation spectrum of YBa 2 Cu 3 O 7−δ (YBCO) is incomplete. As with other high T c superconductors, YBCO is a layered compound in which the CuO 2 layers are conducting, strongly correlated quasi-two-dimensional electron gasses. 4 Measurements of the penetration depth λ c along the c-axis (perpendicular to the layers) find a power law dependence on temperature which is material dependent. In some cases, such as in-plane anisotropic conductivity measurements, 2 it is straightforward to distinguish the contributions of the chains from those of the planes. In general, however, the influence of the chains is not trivial to understand. Calculations based on multi-band models suggest, for example, that interband transitions between the plane and chain bands dominate the c-axis conductivity, 11 and that the pseudogap seen in optical conductivity experiments reflects a shift in interband transition energies due to the opening of a gap 12 in the CuO 2 -layer Fermi surface. These predictions are quite different from those of one-band models, [13][14][15] in which disorder and inelastic scattering are assumed to play a key role in c-axis transport. For this reason, it is essential to develop a model which correctly describes the low energy physics of the chain-plane system.Evidence concerning the chain electronic structure is indirect. In YBa 2 Cu 3 O 7−δ , the chains are not continuous, but are broken into segments of finite length by the fraction δ of vacant chain oxygen sites. In spite of this, there is a large anisotropy in the in-plane conductivity, 2 indicating that the chains are metallic. The absence of localization suggests that electronic states associated with the chains, while highly anisotropic, are not onedimensional. In the superconducting state, the in-plane anisotropy 16 in the penetration depth λ is nearly identical in magnitude to the conductivity anisotropy, suggesting a significant superfluid density on the chain layer for temperatures T ≪ T c . What is truly remarkable, however, is that the temperature dependence of the chain superfluid density-as measured in penetration depth experiments 17 -is almost the same as that of the planes. The apparent similarity of the excitation spectra in the chain and plane layers is surprising given that the underlying bands have completely different struc...