This study examines the content and implications of the Education ( School Councils) Act 1975, within a policy analysis framework. The framework divides policy analysis into two parts: formulation and implementation. The formulation phase looks at the period 1971 - 1975 up until the drafting of the aforementioned Act. It traces the origins of the movement for an increased local role in school governance in Australia. It specifically looks at the interplay between parent, teacher and government representatives who participated in the discussions leading to the drafting of the Bill. This section is historical in content and centres completely on Victoria. The implementation phase looks at the provisions of the Act from several perspectives. First, it examines the changes in powers and membership of school councils, when compared with the regulations in existence prior to the Education (School Councils) Act 1975. Second, using the key concept of power, which is defined in decision making terms, the Act is examined in a more critical vein. It is suggested that it was never an intention of the official government policy makers to transfer significant amounts of decision making power to school councils, despite policy statements to the contrary.