An account was tested of the development of the interplay between automatic processes and cognitive resources in reading. According to compensatory-encoding theory, with advancing skill, readers increasingly keep automatic processes from faltering and provide timely, accurate data to working memory by pausing, looking back, rereading, and compensating in other ways when automatic processes fail. Reading skill profiles (e.g., word naming, semantic access, working memory capacity) were obtained from 71 third graders, 68 fifth graders, and 72 seventh graders from a university lab school or a public school (ages 7 to 15; 146 Caucasians, 61 African Americans, 2 Native Americans, 2 Latino Americans). Children participated in an unrestricted reading task (no time or performance pressure) and were randomly assigned to 1 of 2 levels of 3 experimental manipulations of restriction on reading: time pressure or no pressure, constant reading rate or variable reading rate, read silently or read aloud. Regression analyses revealed that developmental level and restriction moderated the reading skill level-comprehension relationship, and restriction lowered comprehension when it overwhelmed skills, especially for younger readers. Verbally inefficient readers compensated most often, and older readers compensated most efficiently.