For each State, NDRI helped analyze the scope of drug abuse and addiction among the inmate population, current treatment efforts and treatment capabilities, and State resources available for inmate drug treatment. Alabama, Florida, Delaware, and New Mexico have completed planning and are in the implementation phase. Six additional States are planning programs with aid from NDRI and additional sites will be selected in 1988. Guidelines were developed to aid States in the development of treatment approaches that will reduce recidivism among serious drug-using inmates. These suggest a focus on cocaine and heroin users, the use of urinalysis to identify drug abusers at arrest, intensive supervision of users, and compulsory participation in treatment programs for chronic cocaine and heroin users. It is recommended that therapeutic community drug treatment programs be established in prisons, and that inmates who make good progress be paroled to residential drug-free programs prior to completion of their sentences. Narcotic antagonists should be used to reduce opiate use. Program implementation, process, and outcome should be evaluated; and accountability/incentive systems should be devised for supervisors and line staff. Training, work opportunities, and job placement services should be offered to assist in the social rehabilitation of drug users. Other recommendations concern staff recruitment and training, screening measures, public support, and interagency cooperation. 2 references.