Purpose: This paper is a historical review of the development of private primary and secondary education in Hong Kong from 1841-2012. The purpose of this paper is to examine the evolving relationship between the state and private schools in Hong Kong. Design/methodology/approach: This paper utilizes sources from published official documents, public data available on government websites, archival documents and newspapers. The authors also carried out a few individual interviews with legislators, government officials and principals who were familiar with the history of private education in Hong Kong. Findings: The colonial Hong Kong Government adopted laissez-faire policy in greater part of its rule until 1970s. The year 1978 marked the period of "state control" until the 1990s when privatization and deregulation emerged as a world trend in the governance of education. The role of government changed to that of "supervision" instead of "control." Further, it is shown that the change of sovereignty did not avert the trend of decentralization, deregulation and privatization in education which is entrenched in the management of public affairs in human societies. Originality/value: The findings provides an illuminating look into the development of a society and how it grapples with the fundamental questions of the degree of social control and proper use of political power in a colonial setting.