To facilitate normalization and deinstitutionalization of mentally retarded individuals, a three-phase assessment/prescription system has been developed to correspond with a concept of community integration as a series of successive transfers from (1) a restricted environment through (2) a specialized program-oriented rehabilitation and to (3) the least restrictive community living alternative possible. The assessment system consists of three criterion-referenced instruments which are specifically constructed to accomodate differential levels of functioning at each of the three phases of the proposed model. At the screening (pre-selection) level, a skill assessment instrument has been developed and validated to initiate deinstitutionalization processes by identifying individuals who are most likely to profit from available training. At the programing (post-selection) level, an observation-based instrument has been developed and validated to identify programatic entry levels to measure behavioral gains as a function of training. During the first 2 years of the project, 560 mentally retarded individuals have been assessed at the pre-selection level and 412 at the programing level. At each level, reliability and validity of the particular instrument have been demonstrated and direct relevance to the highest level of independence are emphasized. At the community level, a skill assessment instrument is currently being developed for validation. (Appendixes include sample materials and referenced samples.) (SBH)