This paper illustrates the process of developing an oral proficiency test using a procedure taken from Carroll and Hall's (1985) practical guide to making language tests. The development generally follows the steps given, is piloted and then used in placing students in a four year English language program for international communication in Japan. The rationale for the structure of the test and guidelines for administering it are described in detail. The actual test that was developed proved to be not only valid and highly reliable but also more accurate than either the TOEFL or the Michigan Placement Test, Form A, in determining the communicative English language ability of the sample. Statistical analyses were used to support this argument and conclusion.