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Federalism is freqeuntly suggested as a solution for ethnically divided states. At the same time, control over education and in particular over the teaching of language and history is a common demand of minority populations. This paper examines the interplay of these issues in two developed but divided federal societies -- Spain and Austria. Three long-lasting disputes are analyzed -- Catalunya, the Basque country and Carinthia, where the Slovene-speaking minority of Austria is concentrated. Two sets of questions animate this project. The first focuses on education policy making. Who formulates history and civic education policy for the secondary schools? How were these policy-making institutions set up? How have they been contested and maintained? How have these institutions changed over time? The second is concerned with the effects of these policies. Politicians at different levels of government have distinct goals concerning these educational reforms. In giving regional governments control of curricular developments, federal politicians hope that they can remove the irritant of overarching centralizing control and hegemony that so often fuels regional sentiment. On the other hand, regioanlist politicians hope to use control over education to bolster regional identities. Does devolution of curricular decisions over the presentation of history and politics fan national identity and a sense of grievance, leading to further demands for regional autonomy? Or does it lead to a modus vivendi and a depoliticization of the issue? The paper includes a brief discussion of the Belgian and Quebec cases, and concludes with an attempt to draw lessons for the reconstruction of countries emerging or suffering from ethnic conflict. [ABSTRACT FROM AUTHOR]