This paper was written in response to the Idaho Teacher Excellence Program (part of the Idaho School Improvement Act of 1984) to assist districts in developing teacher appraisal programs. Central to effective teacher appraisal systems is a clearly defined purpose, i.e., the improvement of instruction. The system used should distinguish between evaluation of teaching ability and evaluation of teachers, and should be limited to evaluating the teacher's classroom effectiveness. Thorough training of administrators and teachers is an absolute necessity for the evaluation process. Such training ensures that an understanding of a definition for good teaching is present in the evaluation process. Two teacher appraisal instruments are presented. The first is an adapted instrument that is intended as a reference point for developing an appraisal guide. The second includes lists of evaluation items under five categories. An appraisal instrument could use items from this list with a three point scale. Alternative data sources that can be included in evaluation are student evaluations and artifact collection (including lesson guides, assignments, tests, and practice activities). The appraisal system in a school district should be collaboratively developed. (MD)