In 1945, Sisters of Charity of the Blessed Virgin Mary arrived from Dubuque, Iowa, to teach school at Our Lady of Mount Carmel. They instructed classes made up primarily of Mexican Americans from Tempe, but there were also Anglo students. Many of the Mexican American youngsters transferred to this school from the Eighth Street School which had originally been a segregated Mexican School. However, a court case in 1925 resulted in its desegregation. Some Mexican American students still felt the sting of prejudice there and were happy to attend the Our Lady of Mount Carmel School, where they were educated well and treated as equal to the Anglos. The nuns continued to teach in Mount Carmel and the nearby school building, on Sixth and College, until a new school on Rural Road opened in 1960.
In 1962, the parish sold its interest in the church to the Newman Catholic Student Center at ASU. Mexican American families continue to attend that church on the northwest corner of University and College, across from the ASU campus, while many Anglo families moved to the new church at 2121 S. Rural Road.