Working memory refers to the systems responsible for the temporary storage and manipulation of information during the performance of cognitive tasks. There is a good deal of evidence that verbal short-term memory functions as a working memory system. We review advances in our understanding of the nature and limitations of verbal short-term memory and the reasons for its development with age, and go on to consider the common association between impairments of verbal short-term memory and other impairments of cognitive development. We conclude by considering the relationship between short-term memory development and cognitive development.