The administration of the Santa Fe, New Mexico, School District is gradually moving toward school-based management. The document describes how these changes occurred and what impact they have on the way teachers deliver education. This paper draws from interviews of Santa Fe personnel conducted in April 1987 and March 1988. The information was updated in the spring of 1989. The analysis shows that school-based management in Santa Fe has meant reducing significantly the number of district office administrators and changing the nature of teacher-principal roles. There is support for such change among teachers and parents. Teacher innovation seems to produce an atmosphere of excitement about learning and may increase the effectiveness of educational resources in producing learning. But there is also resistance, not only because of existing hierarchies but because school-based management requires voluntary time from teachers and principals on top of already heavy demands. If, in addition, the restructuring begins shifting educational resources to at-risk pupils, the more vocal, higher-income parents may push to alter the nature and spirit of such change. (Author/SI)