This paper is aimed at exploring distinctive features of the decentralization of basic education in Shanghai by drawing on data from Shanghai Program for International Students Assessment (PISA) 2012. While doing the research for this paper, the author found that from a policy perspective, Shanghai had launched a reform policy aimed at transforming the highly centralized education system. This included a devolution of the decision-making authority to local departments of education and a reduction of control over schools. Private school policies were also initiated with the understanding that private schools ought to enjoy autonomy in almost every aspect of decision-making. From the perspective of practice, decentralization of basic education could be categorized as county-based school decentralization. In such a situation, the county bureaus of education wielded decision-making authority over a number of areas in the public school sector, while gradually devolving some decision-making authority to the public schools themselves; and the private schools enjoyed autonomy within their major decision-making areas. Given both the policy and practice of the decentralization of basic education in Shanghai, some suggestions are provided regarding: (1) how to promote school decentralization, and (2) how to balance it with accountability.