The implementation of educational reform in Chicago is discussed. Reform was initiated in Chicago to improve education for all children. A new governance structure is being created for the schools, based on the premise that schools should be under the firm direction of parents and that authority should be vested in the school community, rather than the central administration, which is being restructured. Implementation of the reforms began in 1989 with the election of local school councils. These councils have already begun to make decisions and have been very successful to date. The new leadership dynamic is changing the authority and accountability of principals. Changes in instruction are slower to appear, but some progress has been made, particularly in the adoption of uniform curriculum objectives. Incentives have been provided for further education for teachers, and staff development funds are being allocated to the schools rather than the central administration. Many problems, including legal challenges to the constitutionality of the local school council election process, face the reform effort, but the reform process has begun in a surprisingly smooth manner. (SLD)