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In this study we examine how school leaders in urban districts have responded to the Chilean universal school voucher system. We conducted interviews with public district school officials and principals in Santiago, Chile. We found that school leaders in the wealthy public schools have confronted the market policy by implementing similar cream-skimming measures as private-voucher schools. In comparison, the poorer public-municipal schools are not able to select their students. The respondents in our study elucidated that parent and student choice is limited because specific family and student characteristics (i.e. SES background, test scores), as well as the family/student residence within the city (in a relatively wealthy or poor section of the city) influence the spectrum of opportunities a student will have and the school he/she will enter. As a result, the voucher system introduces educational opportunities for students who have the capital (pecuniary and non-pecuniary) to enable a move from one public school to anothe