This paper examines the concept of a capacity for problem solving through an analysis of data concerning the perspectives of the local school community. The paper's underlying assumption is that within a school community, different groups (i.e., parents, teachers, or administrators) may have markedly different capacities and methods for solving the various kinds of problems of the school. The author identifies particular capacities for solving certain kinds of problems for a single subgroup--principals--in the local schools of nine sites studied by the Documentation and Technical Assistance Project (DTA), and provides descriptive analyses of the problems perceived by principals in their schools, the way these individuals conceive of problems, and the methods by which they and members of their school community address these problems. Specific areas discussed include (1) problems of securing support for the school; (2) problems of school governance; (3) problems of staff and curriculum development; (4) problems of administering the school; and (5) problems of mediating human relations in the school. A review of research on the problems of principals and their role functioning, description of the DTA study method, and major findings on capacity for problem solving are also included in the paper. (Author/AOS)