This report describes a student leadership program, Putting the Environment Above the Common Ego (PEACE), designed to reduce incidences of eighth grade students forming self-segregating groups based on ethnic or racial heritage. The targeted groups form the diverse student body attending a middle school with 1,400 students in Rockford, Illinois. Formation of the student-devised segregated groups was revealed by staff and administration. Analysis of staff and student surveys, personal logs, and the study of the student composition of after school groups confirm the initial observations of this middle school's professional staff. Causes of the problem include: (1) a city historically and geographically divided with societal tendencies to categorize people by race, economic circumstances, or ethnic background; and (2) a school culture that failed to address adequately the issue of diversity. The PEACE leadership program, based on survey interpretation and personal logs, did not appear to have had an impact on the incidences of students forming self-segregating groups. The school has a template of this organization, its purposes, practices, and ideals, but the challenge remains to bring the diverse student group together. Charts and graphs are included along with eight appendices. (EH)