Overcrowding has resulted in diversion, large sentencing discounts, early release, and alternatives to incarceration -- options that often pose a serious threat to the public safety. Overcrowding and prison capacity ought not determine who is incarcerated. More capacity is needed. The question is how expansion can be accomplished efficiently and economically. New private enterprises and public-private partnerships offer stimulating ways to review and renew the correctional system. NIJ is providing useful information to jurisdictions that must expand their facilities. These include 'Construction Bulletins,' a national directory of corrections construction, a construction information exchange, and results of studies of lease-purchase and other privatization options, including contract services and prison industry partnerships. Many of these new approaches are promising. Private management and ownership of facilities may result in quicker expansion, flexibility, and economies of scale. However, private ownership faces many challenges including delegation of the State's authority, liability, and employee resistance.