This brief report describes recent data on the enrolment of students in New South Wales (NSW) government special schools and special classes. There has been an increase in both special school and special class enrolments since 1998 with large increases among students with emotional disturbance. This pattern is briefly discussed in relation to government policy and legislation, social and political factors as well as the notion that there may be a threshold for the extent of inclusion of students with special needs in NSW government schools. (Contains 2 figures.)