The European Southern Observatory (ESO) manages the largest astronomical ground-based optical and near-IR facility on the planet. There has been a continuous growth in applications for ESO telescopes from the first calls for proposals in the late 1960s. Typically one thousand applications are now received per semester involving over 3000 astronomers world-wide. A brief history of the evolution of the allocation process is presented along with a description of the procedures currently in place at ESO for proposal selection and telescope time allocation.