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To teach principles of information literacy effectively, an instructor must convey not only the tools and methods for locating information but also the conditions under which their use is most appropriate. Similarly, a key attribute of an information-literate student is not only the ability to find information but also to assess whether it is appropriate in the context of the need and information environment. Decision-based learning provides a method for helping instructors build these types of conditional knowledge within students. The process for leveraging the affordances of this method in a library instruction setting is outlined herein, including a discussion of considerations that impact course design. Process impacts on the instructor and student are also considered, and results are provided from a multi-semester study where this method was implemented in an academic environment.