The current Reality House facility uses 75 of its 100 treatment beds for male State prison inmates and the other 25 beds for court-mandated jail referrals and mentally ill drug abusers. The treatment design and structure are based on William Glaser's reality therapy model that confronts and dismantles a self-defeating belief system and replaces it with a new set of prosocial values. Residential treatment last 6-9 months. Preliminary findings of research on recidivism indicates that clinically sound treatment reduces recidivism among selected inmates. The cost per day was almost identical to that of incarceration. Case example, table, photograph, and 3 references