In the past 50 years Dutch special education has developed into a wide-ranging system for students expected not to be able to attend regular schools. Today about 4.5% of students between 4 and 11 (Dutch primary school age) attend one of the special education schools. In 1990, a government policy document, 'Together to School Again', intended to provide special support in both regular and special schools. All primary schools and special schools for mild learning disabled and mild mentally retarded students were grouped into regional clusters. Students with other disabilities (sensory, physical, or mental impairments or behavioural problems) were part of a separate line of policy development. Funding was changed from being supply-oriented financing (funding special schools on the basis of the number of eligible students) to a system in which the means are forwarded to the person requiring the services: demand-oriented financing. These policies failed to bring about a development towards inclusive education and this paper will show that it is relatively easy and rewarding to refer a student to a special school: special schools are within commuting distance, eligibility criteria are flexible, special schools are valued and extra funding is available.