This article analyses whether it is possible to develop generalized trust through public action at the grass-root level. We will analyse the impact of seven public schools in Palermo, Sicily, a city that is largely dominated by organized crime. Hierarchical regression analysis shows that the most important school factors for the development of generalized trust are related to openness of school structures, fairness of institutions, the character of peer interaction and students’ participation in voluntary organized activities within the school premises. The positive effects of participation in voluntary school activities can be contrasted to the negative influence of participation in social groups outside the realm of the school. The analysis also shows a small but significant effect of the family’s socio-cultural level on generalised trust. The article uses unique panel data collected at two different occasions in Palermo, in 2002 and 2005. The students were 10-11 years old in the first panel wave and 13-14 years old in the second.