This booklet discusses the development of Professional Development Schools (PDSs), which are functioning public schools where school and university personnel collaborate to create exemplary learning environments capable of transforming both teacher preparation and pre-K-12 schooling. Benefits of PDSs include opportunities for school teachers and college faculty to share information and ideas and for school teachers to participate as partners in education research. Barriers to creating PDSs include developing shared visions, dealing with the two very different institutional cultures, and defining participant roles and responsibilities. Each PDS should have four main goals (providing exemplary education for pre-K-12 student development and learning, preservice education for new teachers and school personnel, professional development for teachers and faculty, and applied study of practice to improve instruction). The National Council for Accreditation of Teacher Education has developed standards for identifying and supporting high quality PDSs. The standards include three stages of PDS development: pre-threshold, threshold, and quality attainment. Developing a PDS involves: assessing institutional practices, gaining support from the institution; developing the initial idea; finding interested participants; creating a shared vision; getting to know one another; determining who decides what and how; assessing progress; surviving the first year; and looking ahead. (Contains 53 resources.) (SM)