Alternative schools of choice such as private, charter, and magnet schools introduce unique market elements into the public provision of education. In this paper, I study the response of traditional (elementary / high) schools to the competition from newly emerged schools of choice in California between 1999-2015. Using rich administrative data from the CDE and the NCES, I create a longitudinal statewide dataset that allows me to track the number of new alternative local schools of choice as well as school level data on the enrollments of students by race: White, Hispanic, African American, Asian/Pacific Islander and American Indian/Alaska Native students. I employ triple-difference design that uses between grade variation in openings of alternative schools of choice to examine the causal effect of alternative schools of choice on the racial sorting in school systems. The analysis suggests that charter schools decrease, while the magnet schools increase the racial segregation in the school district.