This article builds and explores the hypothesis that parent and community participation in school governance can have positive impacts on community development by fostering improvements in school performance and school-community relations and by acting as a catalyst for collective action around community-development issues. It does so through case studies of reforms for school-based management that have led to the creation of school-site councils that include parents and community representatives in Kentucky, Hawaii, Chicago, and El Paso. The article finds that the hypothesized outcomes can occur where parents are given meaningful decision-making authority in schools, nongovernmental organizations provide training and advocacy for parents, and principals actively facilitate parent involvement. (Contains 16 notes, 3 tables, and 1 figure.)