The town of Rajneeshpuram, Oregon, was incorporated for the purpose of achieving the religious vision of the Bhagwan Shree Rajneesh, just as the Mormons established communities around the teachings of Joseph Smith. The incorporation of Rajneeshpuram was challenged on the basis of the First Amendment, however, raising new questions in regard to the tension between the First Amendment's establishment (of religion) clause and free exercise clause. On March 27, 1984, Oregon's State Attorney General filed a complaint in Wasco County Circuit Court seeking declaratory relief from giving legal recognition to the City of Rajneeshpuram. At issue was the claim of "excessive entanglement" between religious and secular action. Attorneys for the Rajneeshees argued that the State of Oregon was in clear violation of the free exercise clause of the First Amendment and that the defendants were being singled out solely on the basis of religious affiliation. In December 1985, after an involved court battle, Judge Helen Frye rejected further motions by the Rajneeshees to enjoin state action and declared the incorporation of the City of Rajneeshpuram null and void. This case serves to emphasize the structural contradiction between the two religious clauses of the First Amendment. Notes are appended. (AEW)