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Students of color are both over-represented in special education than their White peers (U.S. Department of Education, 2007). Thus, the relationship between racial composition and school district policy on inclusive special education is an important area of inquiry. Using the Pre-Elementary Education Longitudinal Study data set (Institute of Education Sciences, 2008) this study addressed the following research question: Does district context (including race, district size, percentage of students with disability and socioeconomic status) predict the likelihood of a non-inclusive special education district policy? Results suggest that for each increase in the percentage of students of color within a district there is an increase in the likelihood that the school district will hold and carry out a non-inclusive policy.