Attention is drawn to the programs funded under the Elementary and Secondary Education Act of 1965, defining this law as a basic attempt to change the interrelationships of social groups in America. This paper presents as a case study the relationships between a community action agency (CAA), on the one hand, and the local school districts (LEAs) and state education department (SEA), on the other, in Nawwau County, New York, during 1968-1970. The dichotomy illustrates how two kinds of agencies interact with each other--expanding, contracting, and resolving jurisdictional disputes. Several theoretical orientations which aid in the explanation and interpretation of the circumstances, activities, and perspectives associated with the relationships that developed between the CAA and the educational authorities are presented. (SHM)