Results from norm-referenced instruments have been the standard for making important decisions in the lives of young children. However, serious concerns have surrounded the use of discrepancy scores to determine developmental delays and their utility for goal setting and intervention development. In response to these concerns, a number of assessment models have proposed the use of local or classroom norms for goal development, instructional design, progress monitoring, and eligibility determination. We outline the rationale, critical dimensions, and techniques for using peer micronorms and discuss technical adequacy considerations. Case examples of the use of peer micronorms with preschool children, supplemented with hypothetical data, are used to illustrate the technique.