  We consider the formulation of two dimensional QCD in terms of gauge
invariant bilocal operators (string field) which satisfy a $W_\infty$ algebra.
In analogy with our work on the $c=1$ string field theory we derive an action
and associated constraints for the bilocal field using the method of coadjoint
orbits. The $1/N$ perturbation theory around a classical solution that
corresponds to the filled Dirac sea leads to the 'tHooft equation for meson
fluctuations. It is shown that the spectrum of mesons, which are the higher
string modes, transform as a representation of the wedge subalgebra
$W_{\infty+} \otimes W_{\infty-}$. We briefly discuss the baryon as a stringy
solitonic configuration and its characterization in terms of $W_\infty$
algebra.
