A growing number of states have policies that positively address resource equity in school construction, distributing capital resources based on district wealth (although as addressed in this brief, these policies are not always implemented with actual funding), but almost no states require any consideration of diversity or segregation in their school construction decision-making processes, even though this is a major factor affecting educational equity. This report/analysis provides an overview of the historical relationship of school construction and school segregation, including evidence of school construction policies in key desegregation court cases. It then describes the state role in local school construction today, highlights key trends and themes of this role, and provides two case studies that help to showcase examples of state participation in school construction, including successes and challenges. It ends by providing recommendations for states to better leverage their influence over local school construction to avoid perpetuating school segregation, and actively support school diversity.