This report addresses the potential use of phasor measurement units (PMUs) within electricity distribution systems, and was written to assess whether or not PMUs could provide significant benefit, at the national level. We analyze examples of present and emerging distribution-system issues related to reliability, integration of distributed energy resources, and the changing electrical characteristics of load. We find that PMUs offer important and irreplaceable advantages over present approaches. However, we also find that additional research and development for standards, testing and calibration, demonstration projects, and information sharing is needed to help industry capture these benefits.