An intervention project sought to lower the grade retention rates of kindergarten, first-, and second-grade students in one New Jersey school district. During three school years, 1987-1990, the retention rate was 7 percent of the total population of these grades. An exploration of causes identified several possible factors, including: (1) lack of preschool experience; (2) developmental immaturity; (3) increased academic expectations; (4) absence of full- or extended-day kindergarten; (5) developmentally inappropriate teaching techniques; (6) classroom management; and (7) organizational factors. Social and environmental variables cited were: (1) behavioral problems; (2) lack of effort and motivation; (3) family transience; (4) low socio-economic background; (5) poor attendance; (6) limited experiential background; and (7) various learning disorders. Following a review of current applicable research and classroom monitoring that assessed student achievement, instructional procedures, classroom management, and teacher effectiveness, four terminal objectives were developed to reduce the retention rate from 7 percent to 3 percent or less. Staff development, the work of the intervention committees, and the implementation of whole-language, cooperative learning, developmentally appropriate instructional practices, and the Writing to Read program all served to accomplish the objectives of the project. At the end of the 1992 school year, the retention rate was 1 percent of the kindergarten, first-, and second-grade population. (Contains 95 references.) (TJQ)