The highlights of research conducted by the Consortium for Policy Research in Education (CPRE) on the state regulation of schools and districts are summarized in this report. State education regulation can be classified into three types, depending upon whether the focus is on school inputs, processes, or outputs. Based primarily on four state case studies, the following 10 conclusions about state regulation are briefly discussed: (1) a lack of clarity exists about the nature and source of regulation; (2) the relationship between regulation and school improvement is uncertain; (3) policymaking has shifted from process to outcome regulation; (4) linking deregulation to high performance may have perverse consequences; (5) takeover programs for troubled schools may not solve their problems; (6) regulation is often not the barrier it seems; (7) deregulation stimulates school improvement in some conditions; (8) deregulation will be difficult to achieve through rule-by-rule waiver offers; (9) blanket deregulation appears more promising than rule-by-rule waivers; and (10) deregulation is best pursued in combination with an overall state strategy for educational improvement. A list of CPRE publications and ordering information is included. (Contains 11 references.) (LMI)