Most children who do not learn to read during the primary grades will probably never learn to read well. Children who reach the end of third grade with low literacy skills typically have less access to the regular curriculum, require long-term support, and fall further behind their peers in literacy achievement and curricular knowledge. However, children experiencing reading difficulties can be identified early and, with appropriate early intervention during the primary grades, can learn to read. This article discusses a five-year pilot program aimed at lowering the rate of reading failure at the K-2 level. The pilot program involves implementing a school-based, continuous monitoring system during those crucial years to assist teachers in the early identification of children who encounter difficulty in their literacy development. This early literacy monitoring program, currently in its third year of data collection, is being piloted in Canada's 20 public schools and six federal First Nations schools. It responds to needs expressed by teachers, department officials, and school administrators and provides a mechanism for keeping parents apprised of their children's progress. (Contains 8 end notes.)