The major purpose of this inquiry is to examine the impact of Chapter 1 services on the School District of Philadelphia since the inception of the program in 1965-66. In addition, the study provides an overview of the Chapter 1 program's impact as the school district's largest and most long-standing remediation program. More specifically, the study describes the following: (1) the history of federal compensatory services as reflected in the local program; (2) the impact of legislation, court cases, and Pennsylvania state regulations upon local programs and services; (3) programmatic decision making and change in Philadelphia's Chapter 1 program; (4) linkage between participation in Chapter 1 programming and academic achievement; and (5) recommendations concerning instructional designs that enhance student achievement and provide a model for insuring program improvement. Three graphs and five tables are presented. (TJH)