I use data surrounding public school redistricting to study how school racial compositions affect neighborhood racial compositions. This redistricting followed from the end of court‐ordered busing for racial desegregation, significantly changing the racial composition of the assigned school for many neighborhoods. Over a 5‐year period, the impact of an increase in the percent black of the assigned elementary school on the percent black of the neighborhood was positive. The effects increased over time, consistent with a simple model of short‐run neighborhood racial dynamics. These results have implications for potential effects of school racial desegregation policy changes on neighborhood racial compositions. (JEL H75, I28, R23)