The following revisions have been made to my paper: 1. There is an extensive discussion of what is an action and on the role of preconditions of actions. 2. There is a new "representational methodology" that specifies how one should go about thinking about a domain to represent it in the ICL. (This discussed both frame and ramification algorithms). 3. There is more discussion about the relationship to POMDPs, Bayesian networks and to abductive formulations of sensing and action. 4. There is a detailed comparison with the work by Bachus, Halpern and Levesque. 5. The paper has had some minor changes to make it more readable. David