This digest links the development of listening comprehension to the emerging reading comprehension of young American Indian students, and suggests ways that teachers can use locally produced materials to enhance young students' emergent literacy. Reading comprehension is the key to literacy, and prior knowledge supports listening and reading comprehension. However, most commercial reading materials used in schools do not reflect American Indian students' exprience of the world. Since there are many culturally distinct American Indian groups, producing commercial "Indian" materials is not a viable alternative. Studies have shown, however, that culturally relevant instructional materials increased listening comprhension among American Indian primary students. Such findings indicate the effectiveness of teachers' efforts to produce instructional materials locally. Such efforts might involve inviting community storytellers into the classroom and transcribing oral presentations for use as reading materials, or encouraging children to develop stories based on their own experiences. Teachers must also recognize the linguistic diversity of their students, who may use English as first language, second language, or dialect. Students' linguistic backgrounds must be considered when designing a language arts program. This digest contains 10 references. (SV)