This article provides an historical perspective on current interest in alternative assessment in the United States and identifies critical qualities that good assessment should exemplify. The paper then reviews research results regarding the technical quality and consequences of using this new form of assessment for large-scale accountability purposes and concludes with implications for future practice. The 1990s have witnessed an explosion of interest in performance assessment in the United States as a policy tool to support accountability and school improvement. In the unique environment of the United States, which values the efficiency and psychometric qualities of multiple-choice testing and fears the litigation that might accompany high-stakes assessments that do not meet technical standards, states, school districts, and others have focused on technical efforts to bring alternative assessment to reality. With appropriate professional development and supportive local contexts, new assessment can support meaningful change and improvement of educational practices. (Contains 113 references.) (SLD)