Within the broader context of issues influencing police and prosecutorial reluctance to become involved in the custodial criminality of prisoners, two aspects of law enforcement and legal proceedings were addressed: unmet needs and the benefits of forensic science services. First, the current situation was assessed regarding types of cases encountered within the custodial setting, how these cases are investigated and resolved, and the role of laboratory analyses. Investigative policies were reviewed for three correctional institutions including Federal, State, and County jurisdictions. Next the question of unmet needs was examined from the perspective of custodial personnel and legal and social considerations. The potential benefits of a directed forensic laboratory in a custodial setting was then considered from the view of the forensic scientist, the prison investigator, and society and discussed in reference to policy options. 1 figure, 1 table, and 14 references (Author abstract modified)