Governmental reforms since the early 1990s have acted as a push factor for starting new schools in Sweden and have created options for pupils to choose a school irrespective of municipal borders. This study highlights the upper secondary school system in small municipalities in northern Sweden since the late 1990s. The analysis shows that the reforms led to more schools, and thereby also to more competition in recruiting pupils both within and across municipal borders. When the cohorts started declining, the vulnerability of the school structure became obvious. The competition generated higher costs per capita and fewer available programs in small municipalities. Furthermore, it was noted that fewer pupils attending schools in small municipalities completed their education compared to those in larger municipalities.