  We present 0.6-2.5um, R~400 spectra of twenty-seven cool, low luminosity
stars and substellar objects. Based on these and previously published spectra
we develop a preliminary spectral classification system for L and T dwarfs. For
late L and T types the classification system is based entirely on four spectral
indices in the 1-2.5um interval. Two of these indices are derived from water
absorption bands at 1.15um and 1.4um, the latter of which shows a smooth
increase in depth through the L and T sequences and can be used to classify
both spectral types. The other two indices make use of methane absorption
features in the H and K bands, with the K band index also applicable to mid to
late L dwarfs. Continuum indices shortward of 1um used by previous authors to
classify L dwarfs are found to be useful only through mid L subclasses. We
employ the 1.5um water index and the 2.2um methane index to complete the L
classification through L9.5 and to link the new system with a modified version
of the 2MASS ``Color-d'' index. By correlating the depths of the methane and
water absorption features, we establish a T spectral sequence from types T0 to
T8, based on all four indices, which is a smooth continuation of the L
sequence. We reclassify two 2MASS L8 dwarfs as L9 and L9.5 and identify one
SDSS object as L9. In the proposed system methane absorption appears in the K
band approximately at L8, two subclasses earlier than its appearance in the H
band. The L and T spectral classes are distinguished by the absence and
presence, respectively, of H band methane absorption.
