This study reports the development and validation of an instrument to assess institutional or university-level environment in universities. Using a sample of 489 academics from 52 departments in 28 Australian universities, an instrument called the University-Level Environment Questionnaire (ULEQ) was field-tested and validated. The final form of the ULEQ consists of 42 items assigned to seven scales: Academic Freedom, Concern for Undergraduate Learning, Concern for Research and Scholarship, Empowerment, Affiliation, Mission Consensus, and Work Pressure. Validation data showed that the ULEQ has sound structural characteristics, thus suggesting that it should prove to be an important research tool for individual academics, departments, and universities interested in improving their learning environments.