Problem-based learning (PBL) was used as the instructional design basis for a TAFE (Technical and Further Education) unit of competency developed for online delivery. The courseware was commissioned to provide online content for users of the Victorian TAFE Virtual Campus (Australia). The aim of the project was to provide courseware that would develop competency in the horticulture course topic "Soil Characteristics and Survey Techniques" and also develop generic skills in communication and collaboration. This paper provides a theoretical basis for the application of PBL to instructional design and a case study of the development, trial application at the University of Melbourne (Australia), and evaluation of the project. (Contains 13 references.) (Author/MES)