Governor Easley of North Carolina has made a sustained commitment to listening to educators and reforming schools to create the working conditions necessary for student and teacher success. With three iterations of the working conditions survey and about 150,000 responses to critical questions about their workplace, analyses have been consistent and clear. The conditions teachers face in schools and classrooms, though often overlooked, are essential elements to student achievement and teacher retention. As the Governor aptly notes, "teacher working conditions are student learning conditions." Data from the previous surveys in 2002 and 2004 indicate that improving teacher working conditions--time, professional development, leadership, empowerment, and facilities and resources--will improve student learning conditions and help retain teachers. In 2006, 66 percent of school-based licensed educators (more than 75,000) responded to the voluntary North Carolina Teacher Working Conditions Survey. More than 85 percent of the state's schools (1,985) reached the minimum response rate (40 percent) necessary to have valid data, providing information needed to gauge the successes and areas of concerns in their own schools and communities. Finds for 2006, reported here, are as follows: (1) Teacher working conditions are student learning conditions; (2) Teacher working conditions affect teacher retention; (3) Teachers and administrators view working conditions differently; (4) Teacher working conditions in North Carolina have improved and are better than in other states; (5) Working conditions results were more likely to improve in schools where teachers indicated that they had used prior survey results; and (6) Schools vary in the presence of teacher working conditions. From these findings and the domain analyses, recommendations for North Carolina are offered to enhance continued efforts to improve teacher working conditions. The following are appended: (1) Statistical Models for Elementary School Student Achievement; (2) Statistical Models for Middle School Student Achievement; (3) Statistical Models for High School Student Achievement; and (4) Statistical Models Explaining Teacher Turnover. (Contains 3 figures, 21 tables, and 22 endnotes.) [This report was produced by the Center for Teaching Quality, formerly known as the Southeast Center for Teaching Quality. It was written with the assistance of Keri Church and Ed Fuller.]