Prison industries have been and continue to be controversial. Critics, generally business and labor unions, have traditionally opposed prison industry programs due to competition and abusive labor practice issues. Nonetheless, Federal legislation encourages the establishment of prison industries and removes some of the restrictions on interstate commerce of prison-made goods. In addition, private sector involvement in prison industries has reappeared, and several organizational models have evolved. The strength of the alliance between the private sector and the correctional institution varies from model to model, as does the locus of power, risk, and reward. In the traditional government use model which maintains control within the public sphere, prison industries produce products whose sale is restricted to State and local government markets. The joint venture model entails contracting by prison industries with a private sector business, while the corporate model treats the prison industry as a relatively freestanding, semi-independent organization. The most independent prison industry model is the free enterprise model. Future trends in prison industries are addressed, as well as the benefits of pilot programs. 34 references, 3 tables, and 2 figures