Some minimum competency testing programs were created chiefly as a vehicle to improve the quality of basic skills instruction. In these programs, the tests are used to define instructional targets clearly and, thereby, enhance the quality of instruction. Few testing programs have included readability levels in their test specifications. In 1979 the staff of a test development agency was faced with the task of devising a set of basic skills tests for South Carolina which adhered to clearly defined readability levels. Since available readability formulas were inadequate for the creation of test items, a Basic Skills Word List was developed. These criteria were used for the development of a vocabulary pool: word frequency in reading texts, word frequency in general reading materials, and reader familiarity with particular words. Words were then allocated to grade levels proportionally, based on the number of words introduced in reading textbooks. The resulting Basic Skills Word List has both instructional and test-related applications. (BW)