In a previous paper, a method for cutting hypoid pinion was proposed. In the method, instead of a basic member which is a hypothetical gear conjugate to ring gear, a newly introduced quasi basic member is used as the actual tool gear to generate the pinion. The quasi basic member is an approximate gear of the basic member. This paper introduces the method for setting up the quasi-basic member on the hypoid gear generator, namely, the method for calculating the machine settingS. The calculation starts with the designation of a central point of tooth bearing on the ring gear tooth surface. The pinion tooth surface which is generated by the quasi basic member becomes approximately a conjugate surface, so that the transmission error of this gear pair is very small. The proposed method does not need the so called tooth bearing development. When the experimentally made pinion was engaged with the ring gear given previously, the tooth bearing was desirable one.