Despite the currency of "equity" as a general objective among technical assistance personnel and feminist groups, little serious attention has been given to developing consensus on definition, rationale, and methodology. Rather, attention has been on the promotion of full compliance with Title IX, in itself a major thrust toward equity. School district compliance efforts are strengthened, however, if the goal becomes educational equity instead of the retention of Federal money. This paper attempts to define educational sex equity and to provide a rationale for full equity in terms of outcomes for students and benefits for school districts. It seeks to clarify the relationship of compliance to equity, and to provide a method of analyzing the short and long term costs and benefits for students and schools of both minimal and maximal equity responses. In addition, it presents some implications for action based on the goals of full equity. It is argued that failure to establish full equity as a goal is in the long run severely dysfunctional for students and schools, is costly in both financial and human terms, and creates disjuncture between the schools and society. It is thus held that while maximal equity responses to Title IX may appear radical now, they are essentially practical and cost effective when viewed from a long range perspective. (Author/GC)