This happens lots in the Royal Oak school as well.
There's people that literally live right across the street from the school, but "lost" the lottery selection, now have to bus their kids to another community (most go to Dalhousie iirc)
EDIT: Here's how the lottery process works for the Royal Oak School:
http://schools.cbe.ab.ca/b402/pdfs/L...s-Nov29_13.pdf