This digest addresses city and state takeover as a school reform strategy, outlining the emergence of takeover in the past decade, discussing promises and limitations that takeover offers, and synthesizing the research to date on takeover's effectiveness. A notable trend over the past decade is greater implementation of takeover reforms, particularly during 1995-97. City/state takeover of school districts has the potential to turn around low-performing schools and districts, and it can hold schools and students accountable to systemwide standards. However, there are serious challenges to takeover success rooted in the potentially confrontational relationship between the city/state and school system. Research across takeover sites is insufficient. More research is needed that synthesizes findings from across takeover districts and identifies circumstances in which takeover succeeds or fails. One emerging strand of more systematic research by Wong and Shen (2001) examines 14 school districts where comprehensive takeovers are in place. The research examines the potential of takeover reform to impact three aspects of the school district: improving the quality of teacher and student performance, especially in the lowest performing schools; more effective financial and administrative management; and increasing accountability in order to improve public perception of the school district. (SM)