This paper describes the design, simulation and testing of a piezoelectrically-actuated two stage spool valve. The first stage is a small spool controlled by a piezoelectric ring bender and the second stage is a closed loop position controlled main spool. A dynamic mathematical model of the valve has been derived. The mathematical model is validated against experimental test data. Step response tests for both the first stage and second stage are presented, and experimental second stage frequency response results are shown. The mathematical models for the amplifier, first stage and second stage spool behaviour are validated against experimental data. The second stage spool behaviour is found to be very sensitive to the first stage flow characteristics. It was also found that displacement of the hydraulic fluid by the ring bender had a significant impact on the valve characteristics.