The article includes: (1) an examination of drug markets in historical perspective; (2) a profile of drug markets in Washington, DC; (3) identification of the participants in the Washington, DC, drug market; (4) estimates of drug dealers' earnings; (5) balancing the risks and benefits of drug dealing; (6) drug selling by adolescents; (7) effect of drug markets on neighborhoods; (8) types of drug markets; (9) market-related violence; (10) policy response to drug markets; (11) enforcement; and (12) treatment and social services, economic development, and prevention. The authors conclude that: (1) There is little evidence that tougher enforcement is likely to have a major effect on the street drug markets of American cities. (2) The considerable imagination of police tactics does not seem able to defeat the economic realities of drug markets. (3) Creating a significantly better set of job prospects for the next generation of potential sellers is greatly desirable for a number of reasons, but wage increases would have to be fairly substantial to bring about a significant reduction in drug selling. (4) An effective and well-integrated public treatment system will be essential to cope with the drug problems of the 1990s. Building up treatment institutions should be a major drug policy priority. Tables, figure, references