The process of developing the curriculum and determining educational policy in the schools of the state of Victoria, Australia, has shifted in recent years from being a function of the state bureaucracy to being a matter for collaborative decision-making among parents, students, teachers, administrators, and others involved in education. To ensure community power, staff representation on the newly mandated school councils is limited. These councils are authorized to set educational policy as long as state policies are not opposed. Teaching staffs retain the authority to choose the educational means for implementing the council policy. This paper discusses the development and purposes of the government policy on collaborative decision making, lists strategies for encouraging community participation, describes the characteristics of both satisfactory and unsatisfactory collaborative decision making programs, and suggests actions that should be taken to ensure the success of the policy. Attachments provide further information on the organization and scope of school councils. (PGD)