This paper describes the action research efforts made by a group from IIMA to initiate change processes in a block in Rajasthan. On discovering the education at rural schools is seen as irrelevant and dysfunctional by rural people, the project team felt that economic activities should be generated to help villagers and these activities should form a base for redesigning the school systems and sub-systems. This paper describes various efforts made by the team to help teachers participate in the developmental activities after initiating these activities in some villages. The results of these efforts and the various experiences are described. The project is still in process and this is an interim paper.