A charter school is a public educational entity that operates under a charter or contract negotiated between the organizers, who design and run the school, and an organization that holds the school accountable based on charter provisions. Most charter schools are elementary schools with smaller than average populations; many serve disadvantaged and at-risk students. The concept of charter schools surfaced during the late 1980s, with the first charter school being opened in Minnesota in 1992. An overview of the historical development of the charter school concept is presented, including a description of characteristics of charter schools, differences between charter schools and voucher programs, examples of charter school achievements, and difficulties faced by charter schools. Accomplishments of charter schools in St. Paul (Minnesota), Lowell (Massachusetts), Castle Rock (Colorado), Henderson (Minnesota), and San Diego (California) are briefly described. Initial startup problems of charter schools include lack of funding and lack of legal and business expertise. Other concerns include charter specifications, financial mismanagement, social inequities, profit motivation, use of uncertified teachers, inability to serve special education students, and lack of accountability. The literature suggests that charter schools offer a viable alternative educational experience, but more study and research is needed to determine their effectiveness. A study to explore concerns related to charter schools in Arkansas showed that only one attempt had been made to charter a school, and that the 12 superintendents surveyed had little factual knowledge about the charter school concept. Their major concerns were loss of funding, competition for students, segregation, circumventing standards, and accountability. Contains 35 references and 10 other charter school resources, including Web sites. (SAS)