This document is a detailed module for instructing teacher trainees in the test development process. Upon completion of the package, the student is expected to be able to (1) identify pre-planning steps in test construction, (2) apply the two-way grid method of item classification, (3) develop and evaluate test items, and (4) apply item analysis to test results. Performance criteria are identified for each subtask involved in achieving the four terminal objectives, and appropriate exercises for mastering each subtask are provided. (MB)