Restructuring of small school districts calls for power changes, including relationships: (1) between the community and the school; (2) among teachers, administrators, and students in the school; and (3) between teachers and students in the classroom. A trip to 25 small town school districts in 21 states revealed few instances of democracy, and many instances of unidirectional teaching, authoritarian leadership, and little community involvement. Small town schools provide a natural connection to their community. The community and schools can work together to solve problems with youth and to allow students to become more involved in the community. Site-based management is a strategy to decrease the hierarchical control and power of administrators. The majority of the 119 teachers interviewed on the trip wanted to be more involved with improving their teaching and the school. Of the 84 principals and assistant principals interviewed, 35 behaved democratically and 38 were categorized as authoritarian. Principals are urged to use the high commitment of their teachers to share school leadership. Changes need to occur in the classroom to allow democratic governance involving the students. With small classes and high social interaction, small town schools have an advantage in providing classrooms where authentic dialogue and involvement can occur. (KS)