Questions about the appropriateness of the Nelson-Denny Reading Test have led to consideration of the use of a criterion referenced test for assessing students' reading abilities before and after each semester of developmental reading instruction. In constructing such a test, a number of steps should be followed. The first step is to clarify the instructional intent, including such particulars as what the student is doing when demonstrating achievement, what the conditions are under which the student is to perform, and how well the student is to perform. The next is to specify domain, during which those who favor objectives-referencing must write either a single behavioral objective or a set of learning objectives specifying the precise skill(s) and mastery level(s) expected of each student. Next, test specifications need to be written as well as test items, and test items need to be edited. Following this, test items should be reviewed for content validity, to insure congruence or consistency between items and the objectives from which they are drawn. Based on this data, the test items are once again edited and the test assembled. The final steps involve setting performance standards, pilot testing, assessing validity and reliability, and preparing a user's manual. Beyond this final step there is a need to continue to gather technical data as the test is used in different situations and with different student populations. (HOD)