This paper reviews the neighborhood school concept, an idea which has been discussed and debated in America for 200 years. According to the paper, historically, the neighborhood school has lost its position as a viable means of carrying out the necessary educational functions. At the same time, the neighborhood school concept has been used as a tool at various times in American history to slow down or halt proposed social reforms, such as the desegregation movement of present times. Many educators and social commentators have noted that the concept is deficient when viewed from the perspective of its intrinsic educational value. Regardless of this fact, the concept has been perpetuated because it functions as a barrier to integration and busing, and because it has been supported by several contemporary political figures, including a former President of the United States, Richard Nixon. (Author/AM)