This guide aims to clarify the virtual university concept for policy-makers and provides a conceptual framework to establish virtual university. Information was gathered from a review of literature and an examination of online university websites in a variety of countries, but with a particular preference for those in the Commonwealth. Each institution has its own legacy of policies that pre-date eLearning and are embedded in the culture and government policies that reflect the pre-Internet world. Where possible, specific examples of actual policy practices are used to illustrate the points discussed. The Guide will help policy-makers to critically look at the evolution of virtual universities and assist in planning a virtual university.