  We discuss lowest-weight representations of the $S_N$-Extended Heisenberg
Algebras underlying the $N$-body quantum-mechanical Calogero model. Our
construction leads to flat derivatives interpolating between
Knizhnik-Zamolodchikov and Dunkl derivatives. It is argued that based on these
results one can establish new links between solutions of the
Knizhnik-Zamolodchikov equations and wave functions of the Calogero model.
