Field work was undertaken over a 6-month period ending in July 1985 and between November 1985 and June 1986. The first phase involved interviews with key Prison Department officials and prison staff, while the second phase focused on inmates and administrative procedures. Following a review of the history of race relations policy and the way immigration and race relations legislation has molded attitudes to race relations in prisons, the authors present the study findings in terms of racial stereotypes in prison, staff and inmate perspectives, problems linked to racial discrimination, and responses developed within the prison system to cope with discrimination. Stumbling blocks to future improvements in prison race relations and reforms which may alleviate the most pressing problems are identified. The study demonstrates some of the difficulties associated with identifying and isolating race relations problems and highlights some of the problems inherent in formulating and enforcing policies designed to eradicate discriminatory behavior. 326 references, 2 tables.