The 2006–07 season was Colchester United's first ever season in the second tier of English football after finishing 2nd in the 2005–06 season Football League One.

Chris Iwelumo's 19 goals and 15 by midfielder Neil Danns in the 2005–06 season put both players in the shop window. Danns left for Birmingham in a deal worth an eventual £850,000 whilst Iwelumo welcomed Jamie Cureton on a permanent deal.

Manager Phil Parkinson, however, resigned on 13 June 2006 in a case reminiscent of the George Burley saga 12 years earlier. Many fans thought that Hull Chairman Adam Pearson had approached Parkinson illegally and like Ipswich before him was made to pay when Peter Heard won £400,000 damages for the club.

Geraint Williams oversaw pre-season training and, after a lengthy recruitment process, was charged with the daunting task of leading United in their first season in the Championship. He employed Mick Harford as his assistant and the pair worked miracles for a club that was now owned by Robbie Cowling, a very successful local businessman.

United entertained Ipswich in the first League derby for 49 years and a Karl Duguid goal gave U's the victory they so dearly aspired to. Parkinson returned with his struggling Hull team in November 2006 and Iwelumo bagged four and a share of the club record as United trounced The Tigers 5–1. Parkinson was sacked five days later whilst United recorded eight home wins on the spin to be in a play-off position by Christmas.

Talk turned to sharing Portman Road if United reached the Premiership with Cuckoo Farm still to rise from the drawing board.

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