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In response to Race to the Top and No Child Left Behind waiver requirements, over 40 states have changed their laws to incorporate student achievement in teachers’ evaluations. Although such changes have spurred confrontations in Chicago, Florida, and elsewhere, conflict does not characterize all efforts to reform teacher evaluation. What leads some sites to adopt a collaborative approach to developing new evaluation systems, and what are the implications? Based on 95 interviews with district and union leaders, principals, and teachers, this in-depth case study analyzes the development of New Haven (CT) Public Schools’ TEVAL. Using Kingdon’s policy formation framework, we examine aspects of policy and practice that shaped TEVAL’s establishment and pay particular attention to developments in labor-management relations.