These guidelines were developed by a committee of staff members from special education divisions at the Texas Education Agency and comprise a collection of federal and state criteria and regulations concerning placement of students with disabilities in the least restrictive environment. Specific requirements (with legal citations) and criteria (based on a compilation of hearing officer decisions, Office of Civil Rights findings, court cases, and federal government policy decisions) are given for each of six issues recommended for consideration in the decision making process. These address: (1) the primacy of the individual student's education needs; (2) provision of special education services in as integrated a manner as possible; (3) identification of those services which need to be provided in a more restrictive setting; (4) provision for integration with nonhandicapped students in nonacademic and extracurricular activities; (5) consideration of possible harmful effects of a projected placement; and (6) placement, if possible, in the school which the student would attend if not disabled. These guidelines are cross referenced to another document ("All Children Can Learn Together: Suggestions for Least Restrictive Environment") offering teaching suggestions. (DB)