This publication reviews the state-of-the-art of competency-based education (CBE) and discusses alternative methods for the development of CBE programs in public school systems. It begins with a discussion of the possible influences of various learning theories on the structure and content of competency-based systems. It then focuses in turn on alternative methods for competency identification, alternative methods for competency instruction, alternative methods for competency assessment, and alternative methods for developing CBE instructional management systems. The paper describes different approaches to these activities that are being used or considered in Oregon and elsewhere in the United States, exploring some of the strengths and weaknesses of each approach. (Author/JG)