Abstract
This paper provides a theoretical analysis of the policies of devolution which have provided the corner‐stone of recent educational reforms in New Zealand. Devolution is conceived of as a state strategy which had contradictory beginnings; these have been reflected in the policy implementation process. Two conceptions of the purpose of devolution are examined: the ‘market’ and the ‘community’. The case study of school charters highlights the intra‐state struggles of the reform process and their effects on state/civil society relations in education. The paper concludes with a brief assessment of ongoing policy changes and their likely effects on schools.