Omer's concept of 'New Authority' wants to avoid both the use of power and the harms of a permissive climate. 'New Authority' fosters good relationships with the child and operates in a network of educators with similar values. In the participative action research described in this article, I focus on the question of whether I could include students in an urban classroom in a New Authority Network. I designed a learning environment that was intended to foster some degree of shared leadership and self-direction. Based on the study of 22 lessons, the student texts, and the evaluation of the project, I conclude that in this learning environment, the students had indeed played a role in the New Authority Network, but that student self-direction also depended on the authority of the teacher and, in cases of unproductive behaviour, some use of power was inevitable. This created a paradox because I was committed to self-direction. I consider Hannah Arendt's assertion that authority is derived from a 'transcendent source' and explain why I found Arendt's notion relevant in embracing this paradox.