Policy change in Ontario higher education in the 1960s resulted in a series of structures designed to co-ordinate each of the two sectors in this binary system. Recent government initiatives may be characterized as attempts to initiate or stimulate change within the boundaries and constraints associated with a structure which has been relatively stable for twenty years. There has been some increase in regulation in the university sector through the establishment of targeted funding mechanisms, programme appraisal and approval mechanisms, and the government's legislated monopoly over degree-granting, but these changes have had little impact on the basic operations of the universities. Government initiatives in the community college sector have had some impact in terms of greater institutional differentiation, but little impact on institution stratification. The stability of the Ontario system can be attributed to the relative homogeneity of each of two clearly differentiated sectors, the limited role of the federal government in the policy arena, a structure which has deflected or rejected calls for structural change, and the failure of those who seek change to stimulate a public or political debate on higher education policy.