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Regenerative testing methods can be used to allow the testing of hydraulic pumps and motors at significantly higher power and flow levels than that of the power supply used. This method can also increase the accuracy of system efficiency measurements. The increase in accuracy is realized because only the power added to compensate for the system losses needs to be measured with great accuracy. Typically, for the operation points of interest this will be a much smaller quantity than the overall power of the system. Knowing that the error in flow measurements is a function of the quantity measured, the benefit of measuring the losses becomes clear. An additional, distinct advantage of regenerative testing is that no dynamometer or load is needed. This results in a much simpler test setup. This paper documents the development of such a test program at the University of Wisconsin-Madison.