Improved professional education for teachers, counselors, and school administrators is needed in order to successfully reform schooling. Fundamental change in professional education requires educational partnerships between schools and universities. The professional development school (PDS) represents a pivotal element in the strategy of utilizing partnerships to effect restructuring of schools and teacher education programs. The place of these schools in the professional preparation of educators is considered analogous to the place of teaching hospitals in medical education. Although there are similarities between PDSs and laboratory schools, there are also differences that contribute to the PDSs' uniqueness. Establishing a PDS is a complex process, which can be expected to pass through four phases of development: exploration, orientation, implementation, and operation. This paper provides guidelines and identifies issues related to each phase. Two documents are included in the appendices: "Oakland University [Michigan] and Pontiac Schools Professional Development Schools: Criteria for Partners" and "Application for Oakland University-Pontiac Professional Development School." (IAH)