A new computer-assisted test of academic English for use at an Asian University was commissioned by administrators. The test was designed to serve both placement and diagnostic purposes. The authors and their team conceptualized, developed, and administered a scenario-based assessment with an online delivery with independent and integrated language skills tasks. The project provided many advantages: (1) the test would be locally developed by university faculty and students who would have a good understanding of the test takers and the needs of the university, (2) the test would use topics, texts, and materials and technology that are socially and culturally appropriate and sensitive to the local context, and (3) the sustainability of the test would be higher as it were cost-effective in the long run in comparison to purchasing and renewing a license for an international test. This article documents the key considerations and processes in the development of this new scenario-based test of academic English that was conceptualized and designed by faculty and students collaboratively. It also discusses the challenges involved in the implementation of such a test, including resistance from local assessment culture and high workload of language teachers.