The purpose of this study was to establish content validity and reliability in assessing the restrictiveness of children's living environments and to develop an instrument that has practical utility to measure restrictiveness. The primary method employed in the study was an expert panel approach. An initial 12-person expert panel was identified to generate a description of the concept of restrictiveness and a list of possible living environment circumstances. A subsequent 64-member expert panel independently rated the restrictiveness of each living environment situation on a 7-point category partition scale ranging from not very restrictive to very restrictive. The expert panels consisted of interdisciplinary professionals engaged in placement planning and decision making regarding children's places of living. Test-retest reliabilities and coefficient alpha indicated the existence of a reliable and consistent assessment of restrictiveness. The process resulted in a valid, reliable, and brief instrument for rating the restrictiveness of 34 children's living environments.The importance of minimizing the number of children who are placed, or remain in, restrictive settings (such as institutions) is receiving considerable attention from mental health, child welfare, and human rights advocates (Hawkins, Almeida, Fabry, & Reitz, in press). The practice of placing disturbed children in group care facilities has been criticized for failing to produce skills and behaviors that children require to function in a normalized setting at the termination of services. As a result, deinstitutionalization has had a tremendous impact on the demand for a different spectrum of community-based services.In terms of human service accountability, government departments overseeing education, health care, and social services have responded with legislation supporting deinstitutionalization and the provision of more nor-