We have previously reported on the conceptual design and predicted performance of a new type of dedicated astronomical telescope to be used for a deep photometric survey for galactic and extragalactic variability and polarization.' Data derived from this survey will be useful for a wide variety of astronomical investigations including the definition of a complete sample of quasi-stellar objects (QSOs), based on their variability and nonstellar colors, the detection of supernovae on the rising branch of their light curves, and the determination of the supernova production rate as a function of galaxy color, morphology, and red shift. The telescope we are producing to accomplish this survey is a transit instrument. It will incorporate a 1.8 m primary mirror of very high quality, fabricated as part of the program to develop the Space Telescope mirror technology, and, as its detectors, two RCA CCDs (512 X320, 30 /Am pixels) used in the time-delay and integration (TDI) mode. By means of a dichroic beam splitter the two CCDs view the same region of the sky, subtending about 8.2 arcmin in declination. The effective integration time on the sky using this technique is about one minute, resulting in a faint limiting magnitude of about 22 per night. The data from the digitized strip of sky are recorded and analyzed in real time for specific events such as supernovae. The CCD/transit technique has been demonstrated using the Steward Observatory (SO) 2.3 m telescope with the drive switched off. The results of this demonstration are shown and discussed. We report on progress in all aspects of the CCD/transit instrument (CTI) development, including the design of the transit telescope, which is optimized for wide-field, seeinglimited imaging. In particular, we describe a two-mirror field corrector system which realizes the potential image quality of the high-precision primary mirror over a wide field and over the wide spectral bandpass of the CCDs.