In an education system that draws students from residentially based attendance zones, schools are local institutions that reflect the racial composition of their surrounding communities. However, with opportunities to opt out of the zoned public school system, the social and economic contexts of neighborhoods may affect the demographic link between neighborhoods and their public neighborhood schools. Using spatial data on school attendance zones, we estimate the associations between the racial composition of elementary schools and their local neighborhoods, and we investigate how neighborhood factors shape the loose or tight demographic coupling of these parallel social contexts. The results show that greater social distance among residents within neighborhoods, as well as the availability of educational exit options, results in neighborhood public schools that are less reflective of their surrounding communities. In addition, we show that suburban schools are more demographically similar to their neighborhood attendance zones than are urban schools.The United States has experienced substantial growth in racial and ethnic diversity (Colby and Ortman 2015), income inequality (Piketty and Saez 2014), and residential income segregation (Reardon and Bischoff 2011) over the past half century. These trends are especially pronounced among children, for whom the population is already majorityminority (Lichter 2013) and for whom levels of residential segregation by income are particularly high (Owens 2016). The consequences of growing diversity and inequality depend critically on how they are filtered through institutions that confer resources and structure intergroup contact. Schools are among the most important of such institutions for children, structuring how community-level diversity and inequality translate into educational settings that serve as sites of socialization and human capital accumulation. In an education system that draws students from residentially based attendance zones, schools are local institutions that reflect the composition of their surrounding communities. As a result, neighborhood public schools typically reinforce the advantages and disadvantages present within their communities.Although the compositional link between neighborhoods and local schools is often thought to be predetermined, there may be a great deal of variation across local commu- * Correspondence should be addressed to Kendra Bischoff, 338