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What does it take to create and sustain racially inclusive communities on our college campuses? Using data from a 28-year institutional case study of Windsor College, a small, predominantly white liberal arts college, we examine the impact of institutional changes – most dramatically, an increase in structural diversity - on the racial climate of a single campus over time. Drawing on critical race theory, intergroup contact theory, research on the creation of diverse and inclusive learning environments, and theories of institutional transformation, we focus in particular on how the college navigated two racial crises – one occurring at the start of the study and one towards the end. Over the course of the study, we find an increase in positive interracial contact for white students and a decrease in negative racial contact for students of color. Whites also became more aware of racial problems on campus and more likely to discuss racial issues with their friends. Overall support for affirmative action and our measure of “contemporary racism” moved in progressive directions and racial gaps declined. We argue that the increase in structural diversity, reframing of diversity issues, and proactive leadership at the top combined with grassroots activism by students were the most important factors in producing a more successful resolution of the second crisis. Despite these improvements, Windsor’s efforts still fall short of full racial inclusivity, as evidenced by the racial gaps that remain in perceptions of the racial climate and feelings of integration.