The emergence of the private prison industry and its operating structure are reviewed. A survey of judicial decisions establishes that private prisons are subject to constitutional restrictions and develops a framework for determining what limits should be placed on private wardens' powers. The article then applies this framework, concluding that the government must maintain effective control over private prison rules and disciplinary decisions that could affect the length of inmates' confinement. This discussion also contends that thorough safeguards are needed for parole and transfer decisions, prison living conditions, and security. An examination of the respective liability of private contractors and government supervisors for violations of inmates' civil rights concludes that privatization will in no way diminish prisoners' ability to recover for constitutional deprivations. 199 footnotes. (Author summary modified)