The Southwest Indiana Disaster Resistant Community Corporation (SWIDRCC) and Sandia National Laboratories formed a partnership in 1999 with the intent of developing and deploying a system that will significantly lessen the loss of human life and lower the cost of disaster recovery in a five-county region. Although this region currently has a response system in place that appears adequate to meet the challenges posed by a disaster, the partnership is considering substantial improvements that could significantly lessen the cost of disasters. As a result of the SWIDRCC-Sandia partnership, a policy portfolio for the SWIDRCC has been developed and a significant technology development activity has been structured using the virtual issue process (VIP). VIP is a strategic planning tool developed by Sandia to provide concise information from a community or group that can be used to resolve complex issues and problems. The disaster management system that was defined as the result of the VIP will integrate sensor technologies, modeling and simulation tools, telemetry systems, and computing platforms, in addition to nonautomated elements including increased community education and involvement. The system is expected to provide information (pre-event, during event, and in event recovery) to community leaders that will significantly enhance the ability of the community to manage disaster response. The value of the system will be manifest in both reducing the loss of human life and staying the economic well-being of the community. It is expected that the system will serve as a prototype for other communities throughout the country. To aid in system definition during the process, two dynamic simulation models were also developed: the policy portfolio analysis tool and the infrastructure modeling tool. © 2002 American Society of Civil Engineers.