This study examines the perceptions of public school principals in New Orleans, Louisiana during the period of extensive decentralization in the aftermath of Hurricane Katrina. Using the frameworks of systems theory and chaos/complexity theories, iterative interviews with 10 school principals form the core data which examines leaders' experiences in an increasingly market-oriented urban school system. The following themes emerged during constant comparative analysis: (1) the omnipresence of storm recovery in principals' lives, (2) the lingering presence of the pre-Katrina school system, and (3) the emerging inequalities of the post-Katrina system. The analysis also identifies several broader system change concepts including: the strange attractor of inequality, differential perturbance, requisite stability, and a need for system leadership to counteract inequality.