This position paper addresses the creation of a new category of eligibility for services under the Individuals with Disabilities Education Act, "Developmental Delay," which would only be applicable to children ages 3 to 5. Such a classification would address concerns about labeling young children, lack of confidence in assessment procedures for children this age, and the reluctance of many states to use eligibility categories other than those explicitly identified in the federal legislation. This paper discusses the impact of such a change on the number of children served (no differences were found between states using categorical versus noncategorical approaches to handicap identification). It offers guidelines for defining developmental delay including documentation of delayed development by use of standard deviations on standardized developmental assessment instruments supported by additional documentation by qualified professionals as well as use of nondiscriminatory procedures. It addresses concerns about the transition from the "developmentally delayed" category to categorical eligibility at the age of 6. (14 references) (DB)