An evaluation was conducted to examine the structure and design of the Continuous Progress Report (CPR), an observation scale used to measure students' early developmental skills in the District of Columbia public schools. Item construction and the relative consistency of measurement constructs in the CPR were the specific focus of the evaluation. Content, criterion-related, discriminant, and construct validities were examined, and a measure of internal reliability was obtained to reinforce findings of construct validity. One kindergarten and one first grade class were selected from each of the seven sites participating in the school system's Early Childhood Demonstration Project. These 14 classes served 193 students. The CPR contains five assessment areas: (1) personal and social development; (2) reading, writing, and language arts; (3) creative arts; (4) physical development; and (5) mathematics and science. Validity assessments resulted in a recommendation that the use of the CPR be continued for all students participating in continuous progress/nonretention models in the early learning years, with refinement of the components for physical development, social and cultural understanding, and grade/placement level. Teacher training should place more emphasis on communication with parents, timeliness and quality of interventions, and student self-perceptions. External measures of interrater reliability and concurrent validity should be developed. Appendixes present report evaluation data, samples of the CPR for several years, and a glossary of terms. (Contains 10 tables, 7 appendix tables, and 16 references.) (SLD)