Scales for assessing depression are well developed for non-psychotic populations but have been criticized for being inappropriate for psychotic populations. As a result we have developed a new rating scale for the measurement of depression in schizophrenia based on items selected from the Hamilton Depression Rating Scale and the Present State Examination. The selection was based on a three stage procedure first factor analysis then measures of internal consistency and finally face validity. Ratings of depression were made on 50 acutely ill schizophrenics meeting DSM-III criteria for schizophrenia assessed at two points in time. Our results indicate that several items from both scales form a superior instrument for measuring depression in schizophrenia. The eleven items generated a Cronbach's alpha of 0.84 at time one and 0.89 at time 2.