This paper describes a community-based treatment model for people who are psychiatrically disabled and living outside an institutional setting. The background of the Community Rehabilitation Approach (CRA) is described including Training in Community Living (TCL) which involves: (1) assertively bringing treatment to the client directly in the environment (in vivo treatment) for four life areas, i.e., daily living, vocational concerns, leisure time, and social/interpersonal skills; and (2) the functional assessment of client skill levels in the four life areas. Individual components of the CRA model, i.e., case-finding, assessment, goal-setting and planning, implementation and evaluation, and treatment staff development, are also described. A case study is presented to illustrate the CRA process, and the assessment instrument, the Rehabilitation Rating Scale, is included. (MCF)