The Preservice Reading Education Program (PREP) is a competency-based teacher education program for elementary and early childhood education students. It focuses on the following five major activities: (1) the coordination of an organized program in reading education around identified teacher competencies; (2) the individualization of instruction for preservice teachers through a system of modular instruction; (3) the provision of supervised field activities for students which have direct relationships to college classroom activities; (4) the creation of a systematic means for relating college resources to a large number of identified pupil instructional needs in surrounding public schools; and (5) the establishment of a continuous program of inservice education and consultation among both college and public school personnel. Instructional models have been developed for PREP to train students in teaching developmental reading, and diagnostic teaching approaches are included in another series of modules used in the program. Modules include knowledge and performance competency objectives and opportunities for student evaluations of the system. Audiovisual and print materials are used for teaching and diagnostic techniques and procedures. (Author/LBH)