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Using New York City schools as a case study, this study draws on interview data from principals, district consultants and administrators, and principal’s union representatives to explore the relationship between market-based reform and colorblindness in educational policy. The study is informed by colorblindness theory, which explores the subtle and unconscious ways equity oriented goals are undermined. I also draw on urban regime theory, which highlights the ability of political, private, and other local actors to use resources and power to build coalitions. Results reveal market-based regimes, supported by business and political partnerships, are likely to relegate issues of equity to the periphery while they focus on privatizing decision-making and shaping schools to reflect market place values.