This paper explores, from the perspective of a local practitioner, phases and effects of implementing a national education demonstration project at the local level. The pivotal role of the locality, its history and its economic realities, is emphasized. Drawing from her experience in planning and implementing a demonstration effort in a northeastern U.S. community, the author cites three difficulties involved in the demonstration project: (1) the illusion of immediate change; (2) the effect of the evaluation study; and (3) the dissonance in goals and time frame between local and national orientations. Based on relevant literature as well as on the author's personal experiences, it is concluded that: (1) the principal is the most important force in enacting a demonstration effort; (2) demonstration programs go through several predictable developmental phases (readiness, high activity, leveling off, and permanent change) that vary in intensity and duration from project to project; (3) if innovation programs are to be effective, they must be more targeted; and (4) while not able to accomplish all the specified tasks, demonstration programs are important contributions to the knowledge base that informs policy. (Author/APM)