The development and testing of procedures and instruments for nursing performance evaluation in Western Australia are described. The approach was used to compare the nursing performance of nine recent graduates of the Western Austrialian Institute of Technology (WAIT) program and two graduates of hospital-based programs. Background information is presented on changing trends in health care, nursing, and nursing education. The approach involved: interviews with recent graduates and their nursing supervisors; observation of nurse-patient interactions using the Nursing Performance Instrument (NPI); and supervisor ratings and self-ratings of the performance of recent graduates using the Nursing Performance Rating Form. A post hoc analysis of 10 separate nursing contexts was conducted and compared to the five role areas of the Nurses Board Statement of Competencies, which are appended. Information drawn from the interviews of supervisors and graduates was used to examine the socialization influences of the contexts in which graduates were working. No significant differences in the nursing performance of the WAIT college-based course and hospital-based courses were found, but the context in which nursing occurs was found to be an important determinant of performance. Questionnaires and interview questions are appended. (SW)