This monograph, one of the nine-booklet Teacher Quality Series, explores the state/local control boundary and suggests how state policy can encourage local strategies to improve teaching. The following topics are covered: (1) understanding the developmental process in teachers; (2) clarifying goals in policy formation; (3) policies indirectly related to classroom events; (4) policies directly related to classroom events; (5) implementing educational innovations; and (6) fitting policies to problems. Information about the other booklets in this series concludes the document. (JD)