This report describes and anlayzes the second year operations of an ongoing successful parent initiated and directed nursery school. Included are: (1) a brief review of relevant issues in early childhood education, such as parent participation and community control in education; (2) a short history of the program's inception and early development; (3) an analysis of the second year operations; and (4) research findings and conclusions. Appendices include several articles describing the Community Cooperative Nursery School, child behavior rating scales and an inventory of attitudes of family life and children. (Author/MS)