The Chicago Public Schools have experienced major reforms since the late 1980s. This has resulted in increased power to local school communities and the creation of local school councils (LSCs) that employ its principals. This paper presents findings of a study that examined principals' perceptions of their changing roles under Chicago's school reform, and compares their responses to a 1984 study of Chicago principals (Morris, Crowson, and others). Data were obtained from interviews conducted with a non-random sample of 15 successful principals from a wide range of school and community settings. In comparison with the prior study's finding that principals engaged in "creative insubordination" in their interactions with the central office, this research indicates that: (1) principals perceive the community as a potential source of support, rather than as a threatening force; (2) the principal's role is shifting from that of the instructional leader to one of manager; and (3) principals are moving outside the bureaucracy to get assistance and resources. The situation is characterized by a complex blending of school and community, and the new school-site autonomy is increasing the demands for good management at the school level. Finally, principals in Chicago schools today are engaged in a more complex redefinition of school organization. Contains 11 references. (LMI)