The IPAE Working Group seeks to develop a capability for extending IP to support larger addresses, while minimizing impact on the installed base of IP users. An enhancement to the current system is mandatory due to the limitations of the current 32-bit IP addresses. IPAE seeks to upgrade the current system, rather than to replace the Internet Protocol. The approach taken will be to sandwich a small addressing layer, above IP but below TCP or UDP, with the new layer having its own IP Protocol-ID. This special layer will thereby encapsulate new, larger, globally-unique addresses for the source and destination, as well as any other fields of information that are considered essential. The specificaton effort will attend to issues of transition and coexistance, among unmodified ``IP'' hosts and hosts which support ``IPAE'' hosts. The IPAE approach will develop a framework to organize the Internet into areas called ``IP Addressing Commonwealths'' within which 32-bit IP addresses are unique and are part of a larger, globally-unique Internet addressing scheme. It is a goal of this effort to avoid requiring any router within a Commonwealth to be modified, but any host wishing full Internet connectivity will need to support IPAE eventually. Further, any system wishing to support full IPAE addresses will need to be modified, including network management software.