This report provides a brief summary of the basic requirements to obtain coherent or heterodyne mixing of the optical radiation backscattered by atmospheric aerosols with that from a fixed frequency source. The continuous wave (CW) mode of operation for a coherent lidar is reviewed along with the associated lidar transfer equation. A complete optical design of the three major subsystems of a CW, coherent lidar is given. Lens design software is implemented to model and optimize receiver performance. Techniques for the opto-mechanical assembly and some of the critical tolerances of the coherent lidar are provided along with preliminary tests of the subsystems. Included in these tests is a comparison of the experimental and the theoretical average power signal-to-noise ratio. The analog to digital software used to evaluate the power spectrum of the backscattered signal is presented in the Appendix of this report. Whiteside, B. N. and Schotland, R. M. Unspecified Center...