A methodology for design based research (DBR) into effective development and use of Multi-User Virtual Environments (MUVE) in vocational education is proposed. It blends software development with DBR with two theories selected to inform the methodology. Legitimate peripheral participation LPP (Lave & Wenger, 1991) provides a filter when thinking about vocational education because moving towards being work ready increases the student's legitimate practices within the vocation. Technological Pedagogical Content Knowledge TPACK (Mishra & Koehler, 2006) provides framework to link content and pedagogy with the MUVE technology. Software development techniques necessary in the development of simulation based MUVEs are shown to have characteristics compatible with development research. A design based methodological process that introduces software development within phases is described. The authors reflect on the methodology after the first phase of research into a MUVE that simulates the hazardous situation of temporary traffic management.