At the same time that schools are closing in many communities because of declining enrollments, the arts are expanding at the community level. The problem of surplus school space can be the solution to the needs of many artists and arts groups. Mutual to the arts groups and the communities are the benefits of flexible arrangements and the presence of desirable tenants who enrich the neighborhood as a community resource. Arguments sometimes raised against locating the arts in surplus school space center around obtaining top dollar for schools, occupancy restrictions, costs of changing occupancy, and fears that the arts are financially risky. These possible disadvantages have been overcome in 23 cases in a variety of communities that demonstrate a range of spatial, financial, programmatic, and governance arrangements, and a broad spectrum of arts uses. Guidelines are offered for carrying out similar projects in other communities. (MLF)