Between 1965 and 1973 the Rhode Island State Department of Education underwent a series of reorganizations affecting its importance and role in the state's educational change process. These reorganizations were in part responsible for and affected by the selection of Rhode Island as a site for a Teacher Center pilot project in inservice teacher education, funded for six years by a federal grant. A case study of the Rhode Island Department of Education during this period upheld models of policy development and change, and resulted in several findings: (1) visible changes in the Department supported and enhanced Teacher Center activities; (2) the Teacher Center stimulated institutional change in the department and in higher education, facilitated collaborative relationships among teachers, and altered the department's traditional regulatory role in teacher education; (3) federal funds from Title V of the Elementary and Secondary Education Act and from the Teacher Center grant had positive, long-term effects on the change process; and (4) a variety of department activities supported educational change. This report incorporates a survey of the literature and concludes with recommendations to state education agencies concerning the provision of effective leadership for educational change. An extensive bibligraphy is included. (Author/PGD)