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The use of representational resources of teaching helps teachers continuously improve their practice together. Peer observations in particular carry a lot of promise, though they are rarely scrutinized in term technical qualities. Drawing on measurement theory and a composite scenario, we examine the role of teacher rater reliability in classroom observation systems. We characterize the nature of rater reliability for formative purposes within the context of teacher collaborative learning and identify three affordances of teacher rater reliability: common purpose, intersubjectivity, and generativity. We expound on these affordances for improving teaching within the context of an illustrative composite scenario and identify implications for policy and further designs for professional learning and related research.