Traditionally, paradigms were used to deal with inflection in inflectionally rich languages. Only recently (Calder, 1989; Carstairs-McCarthy, 1988, 1992) paradigms have been the object of a far-reaching investigation covering their formal and computational properties. This investigation has highligthed the significance of a paradigm-based treatment of morphonological phenomena and its theoretical implications. In this paper, we show how derivational processes in Morphology can be treated paradigmatically by using a morphonological network. The approach is not only theoretical speculation but has been subjected to the practical test of a computer implementation. This implementation leads, in our opinion, to a conceptually and computationally cleaner treatment of Morphonology