In this chapter, the AOP concept has been briefly described together with its usefulness in chemical category formation and the development of the SARs. It presents how the AOP should be developed, assessed and reported. The main advantage of the AOP in grouping chemicals is the categorisation of compounds based on both intrinsic chemical and biological activity. Such categories of chemicals which share not only MIE but also one or more early key events are more toxicologically meaningful than categories based solely on the MIE.