In the current climate of accountability, the responsibilities of principals have increased. The new role of principals requires new forms of training, and standards-based reform is generating major changes in principal-preparation programs. This digest examines some of those changes. First, it looks at the effectiveness of principal-preparation programs. There is a general perception that most programs are ineffective, but there is not enough research to support or abrogate such perceptions. Next, the digest explains how the knowledge base of principal preparation is changing. Academic theory and field experience, while both important, are being redefined to fit the new standards. Next, the digest discusses how leadership programs can improve the quality of principal candidates. Mentoring, aspiring principal academies, and formal nomination by principals and superintendents are some of the strategies being used. The digest next discusses the need for continuing inservice education for principals and advanced certification that will lead to the development of principals and elevate the status of the profession. Finally, the digest discusses ways that states and districts can support leadership development. States hold considerable influence through licensure and accreditation requirements, and districts can apply leverage through collaboration with university programs. (Contains 13 references.) (WFA)