An analysis presents the many factors which enter into the process of reorganizing two central school districts into a larger, more effective district. The analysis follows the two districts through the reorganization procedure and into resulting administrative and financial problems. The involvement and influence of the State Education Department during reorganization are pointed out. An historical development of school district reorganization in New York State is accompanied by a chronological listing of legislation and its effect on districts. By introducing the relationships among school districts, the district superintendent, the State Education Department, and local governments, along with the elements of public support and lay-committee involvement, this study brings out much of the interaction which takes place during reorganization. A bibliography is included. (SW)