This paper outlines a framework to explain the early development of place-value understanding based on an analysis of data from 84 five- to seven-year-old children from diverse cultural and linguistic backgrounds. The children were assessed individually on number knowledge tasks (recalled facts, subitizing, counting, place-value understanding) and strategies for solving word problems (addition, subtraction, multiplication, division). Children were categorised as working at one of four levels, each reflecting an increasing awareness of the structure of place value.