This document provides authoritative information on sources and procedures for developing competency-based or performance-based teacher education (PBTE). Directed toward program designers, the paper largely assumes that the reader has moved beyond a definitional stage of understanding of the topic, although in chapter two a series of resources are annotated that provide several alternative definitions of PBTE. The bulk of the document, however, deals with the designing and planning of a competency-based program, its initial development, and development of a prototype test and its operational implementation. Two appendixes containing evaluation questionnaires are included. (JB)