This paper defines and studies permutation representations on the equivariant cohomology of Schubert varieties, as representations both over C and over C[t(1), t(2)..., t(n)]. We show these group actions are the same as an action of simple transpositions studied geometrically by M. Brion, and give topological meaning to the divided difference operators of Berstein-Gelfand-Gelfand, Demazure, Kostant-Kumar, and others. We analyze these representations using the combinatorial approach to equivariant cohomology introduced by Goresky-Kottwitz-MacPherson. We find that each permutation representation on equivariant cohomology produces a representation on ordinary cohomology that is trivial, though the equivariant representation is not.