Teachers' utilization of personal practical knowledge in effecting school reform was analyzed in a three-year project in a Toronto inner city elementary school. The major unit of study was the school, investigated through the eyes of people responsible for school policy. The study, presented in four volumes, focused on the school board's Race Relations Policy and Inner-city Language Development Policy. Participant observers noted the activities of the principal, teachers, and one teacher in particular to determine the key factors affecting their practice in school and classroom. Then these practices were explained in terms of the staff's personal knowledge. This second volume, which deals specifically with the Race Relations Policy, contains two chapters. Chapter 5 (continuing from chapter 4 in volume 1) traces the policy's development and offers an analysis and discussion of the concept of race that emerged. Chapter 6 examines the implementation of the policy, including a description and interpretation of the Race Relations Committee's activities, and board members' actions to ensure the policy was reflected in curriculum materials. (MCK)