This review examines the literature related to leadership and the decentralized control of schools. It first considers the distinctive goals of public and private agencies, the specific constraints that shape the autonomy of leaders in different sectors, and the ways in which new models of public management are infusing public agencies with market-based principles. Next, the role of principals as public-sector leaders and the evidence on factors related to principal effectiveness are considered. Finally, the review assesses the extent of decentralized control granted to local schools and the evidence on the impact of decentralization.