This paper highlights the dynamics that led to the narrowing of the achievement gap between students in the Hebrew-speaking and Arabic-speaking schools in Israel. Instead of looking at one point of time (Zuzovsky, 2005), this paper examines changes between 1999 to 2003 in certain school/class-level variables and relates them to the uneven increase in achievement between these two populations. (Contains 6 figures, 7 tables, and 7 notes.)