National- and state-level reports on education indicators have been produced since the mid-1980s. However, the debate continues over which education indicators to select and report. This paper outlines the lessons gained by a national organization in building an education indicators system through cooperation with state education agencies and federal agencies. Three issues in the development process for education indicators are emphasized: (1) the role of the consensus process among educators, researchers, and policymakers in selecting and defining indicators; (2) how education indicators can be produced through a cooperative data system with states; and (3) methods for reporting indicators that increase their usefulness by policymakers and educators. The experiences of the Council of Chief State School Officers illustrate the variety of issues that need to be resolved, and the need for careful definition of the indicator areas and the data required. It is essential to involve different interests or perspectives on the indicators system in the development process. Two figures and two tables present information about the process. (Contains 33 references.) (Author/SLD)