In 1978 the Commonwealth of Virginia initiated a three-year plan to develop basal fourth- and seventh-grade Virginia studies materials utilizing the resources of public and private institutions. The plan involved three stages: planning (1978-79), materials development (1979-80), and field testing and revision (1980-81). This document reviews the complex planning process of stage one. Chapter 1 reviews project goals, identifies the need for formative evaluation of materials and models used to develop a state-studies curriculum, and presents a conceptual framework and methodology for the evaluation. Chapter 2 explores the dynamics of interagency planning for curriculum development: it reviews the evolution of the director's role and the structural needs for coordinating work and mutual goal setting in an interagency project. Chapter 3 clarifies steps taken during stage one to insure that the final product would be congruent with project goals. It explores the evolution of the curriculum development process, including aspects of content, objectives, instructional strategies, and philosophy. Chapter 4 describes how a mechanism for obtaining public and private resources was developed. Chapter 5 gives conclusions and recommendations for future planning. (AV)