The goal of this curriculum development project is to promote student initiated research into problems of the inner city. Initial project planning is reported in ED 055 012. Emphasis in this annual report is placed on the teacher's role in program development. The first section clarifies how the developers believe teachers should be involved in each of the four major phases of program development: clarifying general educational objectives, determining curriculum objectives (stated in behavioral or operational terms), participating in instructional planning and evaluation. The work strategies used by the project team are reported. Since September, 1971, three team members have taught Grade 11 Urban Studies and have field tested aspects of the program. Materials developed to date include 1) a field trip kit (which has a route plan, observation sheets requiring students to analyse land use, pollution factors, housing, road conditions, etc., and a pamphlet outlining field trip planning procedures); 2) a simulation game (based on decision making procedures of municipal councils when faced with development issues); 3) a series of pamphlets on investigative techniques; and, 4) a multi-media workshop kit (which includes instructions on using and producing media materials). Planned for future development are a book of readings, a student's workbook, and a teacher's handbook. Contributions of supporting agencies are listed in the final section. (JMB)