Racial disproportionality in school discipline is an enduring systemic problem. This study is based on a collaboration with 14 school stakeholders: American Indian students, parents, community members, and educators at a high school in a community-driven problem-solving process called Indigenous Learning Lab (ILL). ILL members addressed the root causes of the racialized school discipline and created a new school discipline system. Using critical geography and decolonizing methodology as the theoretical and analytical framework, this study aimed to unpack the emergence of Thirdspace -- a space of resistance, possibilities, and hopes -- in ILL to address enduring racial disproportionality. Members challenged race-neutrality of data sense-making, mapped out dystopia, revitalized American Indian epistemology, and mapped out a real utopian vision of schooling.