Some recent district-level teacher leadership programs have incorporated both instructional coaching and formal evaluations into teacher leaders' (TLs) responsibilities, which research suggests could challenge the relational dynamics necessary for effective coaching. Using a sensemaking lens, we conducted a qualitative case study of one district's effort to integrate coaching and formal evaluation in their teacher leadership policy. We conducted a total of 26 semistructured interviews with district administrators and school leaders, TLs, and teachers in two schools, and seven observations of teacher leadership activities. We coded interview transcripts and field notes deductively and inductively. We found that when granted autonomy, principals drew on varied sources for making sense of and enacting this policy, and the messages they conveyed through school leadership norms deeply influenced how teachers and TLs enacted and experienced the integration. The integrated district policy in and of itself did not hinder relationships between teachers and TLs; rather, what mattered most for teachers was the extent to which they perceived their TLs as part of a larger system of support or accountability. This study suggests that the school norms that school leaders put into place when enacting teacher leadership policies deeply influence teachers' perceived relational dynamics with TLs. Teacher leaders have a unique role in implementation that is shaped by school-level norms and conceptions of effective leadership and coaching.