Guidelines for setting performance standards for minimum competency testing are suggested. Because qualitative judgments are involved, certain options should be considered, such as periodic reviews and necessary revisions of standards; use of experience-based rather than arbitrary standards; and thorough consideration of standards, even if the process is time-consuming. Major factors to examine in setting standards are the contextual considerations and particular target groups; the objectives to be attained; the gathering of relevant performance data in order to set realistic standards; an awareness of the preferences of interested groups; and the value of separate or aggregate standards. Procedures available for setting standards include: (1) informed judgment model; (2) borderline group methods; (3) contrasting groups model; (4) Nedelsky's methods; and (5) Angoff adaptation. (MH)