This thesis suggests a new method of developing reading materials for Navajo students. The core of this method is based on phoneme- grapheme relative frequency correspondence data. A short story was phonetically edited and rewritten using the phoneme-grapheme relative frequency method. This short story was one of the major products of the thesis. This short story and three other short stories previously phonically rewritten, were presented in both this form and in original text to 38 Navajo students for reading. Reading speed and reading comprehension were measured for each student on the short stories. The students performed with superior reading speed and with superior reading comprehension on two stories and equal comprehension on two stories. The difference on reading speed was significant at the .01 level. On the two stories with reading comprehension differences, the difference was significant at the .05 level.