Recent improvements in the physical understanding of ER fluids have led to the rational design of new ER materials with improved properties. This paper gives an overview of several recent developments in the formulation of ER fluids, concentrating on new particulate phases for ER dispersions. Examples of homogeneous ER fluids are also discussed. The trend leading to designed ER dispersions is demonstrated by a new class of electrorheological fluids based on non-aqueous polyurethane dispersions. The fluids exhibit an attractive combination of properties: low viscosity, high ER effect, and low conductivity. The dispersed phase consists of a specially developed polyurethane elastomer which solvates and stabilizes metal salts. The polymer network density influences the mobility of the dissolved ions, allowing a surprising degree of control over the ER effect Properties such as the field strength dependence of the ER-effect, switching response, and conductivity of these fluids correlate directly with changes in the polymer structure. Electrorheological measurements in a couette viscometer (shear-mode) and in a model shock absorber (flow-mode) using a commercial polyurethane-based fluid show that the ER effect is also dependent upon the shearing geometry.