Designed to aid American Indian communities in the development of Indian contract schools, this publication includes a definitive narrative describing all aspects of contract school development, lists of organizations and materials which are of use in contract school development, an extensive table of contents which directs the reader to specific questions answered in the text, and sample forms, designs, etc. (found in the appendices). Specifically, this document presents: a definition of a contract school; eligibility requirements for contract schools; rationale for community control of Indian Education; community education organization procedures; application for funds to evaluate the present school and plan a contract school; review actions for the application of funds for evaluation/planning; community education goals; determination of community's educational goals; evaluation of the school system's ability to meet the educational needs of the community; present and future educational plans of the community's schools; designing the educational policy and curriculum; designing the school's building and equipment; determining the staff; planning to change the present system to the newly designed school; determining the cost of change and the first year of operation; determining the community's desire for a contract school; the contract application; the Bureau of Indian Affairs' review actions; negotiations for a contract school; renovating/constructing a building; staffing; purchasing materials; ongoing and long-range evaluation; and school improvements. (JC)