This monograph set out to achieve four major goals: 1) Communicate that an institutional setting for older persons is the result of interaction of the three dimensions of the organization, the individuals and the setting; 2) Demonstrate the role of the physical environment as a therapeutic tool; 3) Demonstrate the importance of the preparatory process in creating a facility for older persons; 4) Demonstrate the rewards of ongoing analysis and evaluation. It hopes that this story of the innovation center will encourage others to consider all the factors and be prepared to make a commitment to provide a true therapeutic environment for the elderly.