Race and class segregation have long governed patterns of residential sorting in the American metropolis. However, as urban neighborhoods across the country experience an influx of white and middle-class residents, they could alleviate the stark economic and racial segregation that is ubiquitous to urban neighborhoods and school systems. This paper argues that gentrification is a growing phenomenon with great potential to influence neighborhoods as well as cities and the schools within them. Key steps are discussed that policymakers can take to foster neighborhood and school change that is both inclusive and equitable.