The booklet outlines characteristics and competencies needed by principals in schools serving special education students. Traits of empathy, integrity, honesty, creativity, and imagination are among those considered. Competencies (in terms of knowledge, values and attitudes, and performance) are listed for seven functions: to promote and represent the developing trends and issues which affect special education programs in schools; to foster and participate in constructive staff development; to observe, evaluate, and support the development of appropriate, instructive learning environments; to communicate about assessment programs and methods; to plan, implement, and evaluate organizational structures which permit cooperative processes and relationships with school, home, and community; to oversee architectural consideration; and to assure that issues affecting special education students are understood by political representatives and legislators. (CL)