Across the country, urban school districts are moving beyond industrial-era systems by creating "innovation" or "partnership" schools that have the freedom to reinvent the way they educate students. The Progressive Policy Institute released a how-to guide for legislators, district leaders, and advocates who want to create more of these 21st century schools: "The Third Way: A Guide to Implementing Innovation Schools." From Texas to New Jersey, from Colorado to Indiana, about 20 urban public school districts--and a few rural ones--are giving schools real autonomy, so school leaders make the key decisions, such as hiring and firing and controlling the budget. They are promising to hold these schools accountable for their performance and replace them if they fail their students, encouraging them to diversify their learning models, and letting families choose the schools that best fit their children. The results so far have been impressive. In Indianapolis, "innovation network schools" are the fastest improving group of schools in the district. In Camden, New Jersey, reading proficiency in the district's 11 "Renaissance schools" doubled and math proficiency quadrupled in their first four years. The guide draws lessons from the experience of these and other districts, discusses key "success factors," lays out implementation steps, and includes model state legislation to allow and encourage districts to create such schools. [The City Fund provided funding that made this publication possible.]