This guide for administrators provides a step-by-step process for establishing new or revised policies to deal with student misuse of alcohol and other drugs on college campuses. Emphasis is on a new doctrine of environmental management which stresses the school's responsibility to take measures against foreseeable hazards and risks in the school environment. Also stressed is establishment of sound prevention-oriented policies. The policy development process is broken down into 15 steps, grouped into three major stages: (1) assembling resources; (2) selecting and revising the policies; and (3) implementing the policies. After an executive summary, an introductory chapter addresses the need for such a process. Chapter 2 reviews the scope of alcohol and drug use problems on college campuses. Chapter 3 explains the concept of environmental management and applies it to policy development, and administration and compliance with the Drug-Free Schools and Campuses Act. Chapter 4 describes key policy options for alcohol and other drug prevention. Chapter 5 outlines the 15-step procedure for reviewing, selecting, and implementing campus policies and emphasizes maximizing the participation of significant stakeholders and policy integration. Among six appendices are a risk assessment guide, a model policy, and actual policies of five institutions. (Individual chapters contain reference endnotes.) (DB)