A charter school is an autonomous educational entity operating under a contract negotiated between the organizers who manage the school (teachers, parents, or others from the public or private sector) and the sponsors who oversee the provisions of the charter (local school boards, state education boards, or some other public authority). The premise that underlies the charter school idea is that this innovation will free schools from the uniformity and confines of top-down regulations and mandates. Eleven states have charter school legislation, but only 6 of those charter laws are considered to be "alive." The possibilities for charter schools in Pennsylvania appear quite bright. In states where charter schools have been adopted, a number of challenges have developed, four of which are prominent. The first is the necessity for new relationships to be developed between school boards and schools. The second is that charter schools must use true site-based decision making. A third challenge is that charter schools must, and will, provide new roles for teachers, and the final challenge is that charter school legislation will also generate fear among educators that it will be a back door for private school vouchers. In Pennsylvania, as in other states, the charter school innovation must not be seen as an instant panacea. Nevertheless, charter schools offer an avenue to bring together some of the most promising educational reform ideas to create highly autonomous and accountable learning environments. (Contains one table comparing charter school legislative approaches.) (SLD)