Australians commonly believe that the solution to the problem of AIDS transmission in prisons is to identify infected prisoners through compulsory HIV antibody testing upon admission and the segregation of HIV-positive inmates. However, this approach ignores the time lags and other realities of HIV transmission. In fact, the compulsory testing programs currently operating in several jurisdictions are not achieving their intended goals of providing reliable data on the prevalence of HIV infection among inmates. Instead of compulsory testing, policies should emphasize education and training of all inmates and correctional staff; integration of seropositive inmates into the general population, not the segregation practiced in some jurisdictions; and the maintenance of confidentiality of HIV antibody testing results. In addition, condoms should be issued, conjugal visits allowed, a needle exchange program established, and efforts made to protect correctional personnel from occupational transmission. Tables and 14 references