This paper describes a national cooperational project STO, which has the aim of developing a large-scale Danish lexical database for computational use. We discuss some organisational aspects of the project and present the current project structure and main activities. Further, we discuss in more detail some of the linguistic issues that have required thorough consideration before a large-scale encoding could be initiated, encompassing topics such as the morphological encoding of compounds and proper names, as well as the syntactic encoding of there-constructions, phrasal verbs and reflexive verbs.