Discussions about the ways of improving high schools have frequently considered school size and many "new" schools reduce the size to personalize the school experience and produce more positive student outcomes. Interest in designing new small schools has increased. Embedded in many of the small school design initiatives is the belief that new school design must be a collaborative effort of educators, parents, students, and community organizations. However, both research and experience within and across public and private sectors document numerous challenges in designing, implementing, and sustaining inter-organizational initiatives. Cross-sector coordination has resource allocation, leadership, logistical and operational challenges and dilemmas that affect and are affected by levels of autonomy and adaptability within each agency that is part of the joint venture. The purpose of this study was to describe what happens in the initial phases of the design of small schools with particular attention to the cross-sector, community-based interagency processes throughout a 9-month initial design phase. A framework focused on capacity building in restructuring schools and responding to high-need communities developed by Natriello, McDill, and Pallas (1990) established a foundation for this study. This qualitative study incorporated data generation and analytic strategies that are sensitive to individual and interactive constructions of meaning. Analyses of documents and interviews with members of five design teams in one urban school district were the primary activities for generating data about the early experiences of the design teams. Interviews clarified the challenges and the potential of inter-organizational processes in the design of new school design. Cross-case analyses revealed differences across the teams in the reasons for individual involvement, design team formation, staffing decisions, student recruitment, and experiences establishing and sustaining community connections and meaningful partnerships. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]