Bolivia is one of the few Latin American nations with a majority indian population. Strong assimilationist policies over the past fifty years have meant indians have been discriminated against in many areas of social life. Rural schools have been a principal tool in assimilation. Over the past decade political and education reform have shifted policy away from an assimilationist model to a multicultural one. Of great significance is the requirement for use of indigenous languages in school and, as a consequence, large numbers of teachers who themselves come from indian communities. Despite these policies, schoolteachers are still a major source of assimilationist cultural ideology and are principal agents in reproducing hegemonic racism in indian communities. It cannot be assumed that indian teachers will be positive models for indian children in a racist society; indeed, the ambiguous racial and cultural position of the indian teacher may mean quite the opposite. This paper, based on anthropological fieldwork, examines the role of teachers and schooling in an Aymara-speaking highland village.