Competency-based education was used as a program development tool in a project featuring collaborative efforts among teachers, school administrators, and teacher educators to improve existing programs. The project focused on a systematic approach to upgrading the elementary physical education programs in the participating teachers’ school, and was sponsored by the Physical Education Program Development Center. The Center is a field-based organization, its purpose being to facilitate ongoing program and staff development in affiliated school districts. The study was to document and describe what happened and to assess the impact of the project on existing school programs. A variety of quantitative and qualitative data collection techniques were used. The results showed that 17 competency-based program segments were designed and implemented by the eight participating teachers. Some gains in student performance were noted. The teachers’ reactions to the use of competency-based education were generally favorable.