Let X be an integral projective scheme satisfying the condition S 3 of Serre and H 1 (O X (n)) = 0 for all n ∈ Z. We generalize Rao's theorem by showing that biliaison equivalence classes of codimension two subschemes without embedded components are in one-to-one correspondence with pseudo-isomorphism classes of coherent sheaves on X satisfying certain depth conditions.We give a new proof and generalization of Strano's strengthening of the Lazarsfeld-Rao property, showing that if a codimension two subscheme is not minimal in its biliaison class, then it admits a strictly descending elementary biliaison.For a three-dimensional arithmetically Gorenstein scheme X, we show that biliaison equivalence classes of curves are in one-to-one correspondence with triples (M, P, α), up to shift, where M is the Rao module, P is a maximal Cohen-Macaulay module on the homogeneous coordinate ring of X, and α : P ∨ → M * → 0 is a surjective map of the duals.Proposition 1.11. Every psi equivalence class of sheaves satisfying T contains an extraverti sheaf satisfying T .Proof. Let E be a coherent sheaf satisfying T . Let), and hence is a finitely generated graded S = H 0 * (O X )-module. Take a set of generators ξ i ∈ Ext 1 (E, O X (−a i )) of this module and let