The Houston Smart Commuter ITS Operational Test is assessing the potential to gain more efficient use of major travel corridors through greater utilization of high-occupancy commute modes, shifts in travel routes, and changes in time of travel through the application of innovative approaches using advanced technologies. The Houston Smart Commuter ITS Operational Test is a federally sponsored project and is being jointly funded by the Metropolitan Transit Authority of Harris County (METRO), the Texas Department of Transportation (TxDOT), the Federal Highway Administration (FHWA), and the Federal Transit Administration (FTA). The project contains two different, but compatible, components. One component focuses on encouraging a mode shift from driving alone to riding the bus through the provision of real-time traffic and transit information. The second component encourages carpooling through the use of real-time ridematching services. This report documents the activities conducted on the Smart Commuter ITS Operation Test in FY 1996. These include selecting the vendors and developing the commuter information delivery system, recruiting participants, collecting the base line data for the local evaluation, and other activities. The report also presents the anticipated activities and schedule for FY 1997.