In this paper, current research into the use of Activity Theory in the development of collaborative design tools and methods is discussed. Basic theoretical concepts from Activity Theory are presented. Among the concepts discussed are mediation, activity, and the Activity Theory (AT) model. The implementation of these concepts is discussed in the context of CIPHER, a research and development project involving collaboration at an international, regional, and national level. It is proposed that Activity Theory can be useful in developing collaborative design tools and methods. Some of the design tools and methods that are being developed are presented.