Both income inequality and inequalities in education have been the source of much social and political discontent in South Africa. As the process of political change in the country continues inexorably, both these issues are likely to receive increasing attention. This paper gives attention to some dimensions of these problems and their interrelationship. Until recently, there was almost complete racial segregation in both primary and secondary education in South Africa for the four racial groups (blacks, coloureds, Asians and whites) as defined in that country, and the separate facilities were highly unequal. I analyse below the extent of inequality in resource allocation in education in South Africa and how this has changed over time. In addition, I consider whether education and the distribution of earnings have been related in that country. The evidence suggests that there is a relationship between education and income distribution in south Africa. This implies that any reforms which create a more equal distribution of education might contribute towards a distribution of earnings that is less unequal in the longer term.