In the 36-hour New Mexico riot, inmates savagely attacked each other and held correctional officers hostage yielding damages over $100 million. Lessons to be drawn from this event address security systems for violent offenders, high prison management turnover, and prison intelligence beyond the snitch system. Also discussed are understaffing, inadequate training for correctional officers, and a comprehensive riot contingency plan. Among the preventive measures recommended are: structuring prisons to function in accordance with preset maximum resident levels; creating a viable economic basis for producing marketable goods; and placing more emphasis on rehabilitation and community-based corrections. The authors suggest using force to free hostages held by inmates if negotiations do not progress and putting contingency plans into effect automatically if violence occurs. Photographs.