The government of Chile mandated a system-wide reform in public school education in 2017. The reform calls for de-municipalization of the public school sector (345 municipal education departments under mayoral control) and the creation of 70 Servicios Locales de Educación Pública (SLEPs) between 2018 and 2025. The reform represents a largescale attempt to improve and save public education in Chile. This analysis is based on case studies of implementation of the first four SLEPs in the first year of the reform. Using Stake's method for multiple case study analysis, the analysis explores how context influences the professional capacity of the SLEPs to provide professional assistance to schools. The study relates to research on the effectiveness of intermediate level agencies in school systems and on contextual influences on organizational innovation and capacity building. The analysis reveals that contextual factors shaping initial professional capacity of the SLEPs reinforced traditional practices of local education agency support to schools in three of the four cases. The differentiating factor centered on the actions of local agency leaders who responded to capacity gaps and lack of direction from government authorities as either constraints on change or as an opportunity for innovation.