A case study of an economically distressed rural Kentucky school district examined the theory that educational policy can enable community participation and that participation can enable policy implementation by affecting school governance and expanding the services provided. Primary data were gathered via interviews with four parent participants, one longtime community member activist, six educators, and one regional-level administrator who was also a longtime active community member. Secondary data came from newspapers, state government documents, policy papers, and critiques and updates of the Kentucky Education Reform Act (KERA). Findings indicate that during the decade prior to the passage of KERA, educational reform policies were few and did little to enable community involvement in the district. Participation that did exist was loosely organized, project-oriented, and individualized, due to the absence of institutionalized structures for input. Passage of KERA led to changes in the level and type of local participation by enhancing the capacity of community members to get involved, creating incentives or decreasing disincentives to participate, providing new platforms (school councils) on which to provide input, and mobilizing local actors to get involved. One constant barrier to participation was a lack of personal resources due to low socioeconomic status. Recommendations for policymakers include maintaining localized structures; helping people develop skills for civic engagement early on, such as in school; and addressing the social and economic development of low-income communities. The appendix includes the interview protocols. (Contains 32 references.) (TD)