Designed to promote literacy development, this guide provides suggestions for setting up classroom environments that assist preschool and primary school teachers in providing literacy events and activities related to books. General suggestions included in the guide are accompanied by photographs illustrating the suggested activity or environment. Each general suggestion also outlines goals that are achieved through the activity, and provides specific recommendations for implementing the proposed activity or environment. Suggestions include labeling the classroom, creating a library corner, teaching children how to handle books, choosing children's books, reading aloud to the class, using books to create classroom themes, and getting parents involved. (Contains 10 references to children's literature review journals and guidebooks and 8 sources of supplies such as posters, library shelving, puppets, and bookcovers.) (MM)