This booklet proposes a 10-year plan for restructuring local school districts entitled "Education by Charter." An introductory section cites current demands for educational reform and cites proposed remedies in order to suggest that nothing short of fundamental change in the internal organization of the school district will sustain and incorporate these needed reforms. The next section addresses the challenge of reorganizing the school district by analyzing the long-term evolution of the school district, the structural elements of the present organization, pressures on the present organization, and goals and tools for reorganization. The main section, "Education by Charter: Restructuring School Districts," sets forth a hypothetical scenario, "Hometown Public Schools," to illustrate the process of reorganizing a school district over the next 10 years. Ten "Events" are portrayed to dramatize this process. Of these, the fourth event is an extended explanation of the key concept, "Education by Charter." The summary presents 12 goals of reorganization, discusses other strategies for reorganizing a school district, and touches on the costs and on the relationship of school district reorganization to other reforms. Twenty-seven references are included. (TE)