This case study examines a small school district (called Hamlet) in New York State which appears to be a perfect candidate for school reorganization because of low (and decreasing) enrollment (187 pupils in grades K-12), very high per pupil expenditures, two larger (520-610 pupils) neighboring districts to which pupils could be transported with minimal increase in average travel time, and some services already shared with both districts. The first section describes the Hamlet district as it currently exists: the community, school administration, faculty, guidance services, school board, students, transportation, academic program, special education, computer program, achievement test results, extracurricular activities, and students' future educational goals. The second section considers reorganization options and programmatic, personnel, social, and financial benefits that could result from consolidation. The third section discusses reasons for rejecting reorganization including the community's desire to maintain free lunch, senior trip, and winter ski programs. The fourth section studies the neighboring reorganized districts and the lingering feelings of distrust and betrayal held by some residents. The summary section concludes that although there is no doubt that Hamlet students would benefit academically and socially, reorganization should proceed only if strong community support exists. (NEC)