In 1992 the government of New South Wales, Australia, announced its commitment to a program of quality-assurance reviews of schools. The New South Wales school system plans to implement a quality-assurance system, which is process-based on the following: a primary focus on student learning, clear and shared direction, focused involvement and ownership among key stakeholders, decision making based on quality information, an emphasis on both process and outcomes, schools as learning organizations with an orientation toward continuous improvement, and proactive planning. This paper describes a quality system, quality assurance, and a quality-management system. It also discusses strategies for developing quality systems in schools and at the system level. The role of the Quality Assurance Directorate is outlined. A conclusion is that quality assurance cannot guarantee students' learning outcomes, but can be used as a means for continual improvement in an ever-changing organizational context. One figure is included. (LMI)