The clustering of schools, which aims to group state primary schools, area secondary schools and junior lyceums into autonomous regional colleges, is part of an extensive drive by the Ministry of Education, Youth and Employment and the Education Division to reform the education system in Malta. This paper will present a study of this current innovation in Maltese education, as well as the role of leadership in the creation of school networking, a reform intended to strengthen the transition from a centralized to a decentralized Educational System.  This paper will give an overview of the historical background of the Maltese Educational System and how the Ministry and the Education Division embarked upon the networking of schools to provide improved quality education in Malta (Galea, 2005:xii).  A case study of the Gozo College as a model of how theory is being translated into practice in the setting up of four autonomous regional colleges will be presented.  The question of educational leadership in this innovative reform of network organisation of state schools in Malta will also be analysed.  The research of this paper will be supported by data collected from interviews and questionnaires given to the coordinator of the Gozo College, Heads of Schools in Gozo and other stakeholders.