THE AUTHORS NOTE THAT THE CRIMINAL OFTEN HAS FAILED TO DEVELOP AN ABILITY TO SEE THE MORAL FOUNDATIONS OF LAW FROM SOCIETY'S POINT OF VIEW, AND THAT MOST PRISON ENVIRONMENTS DO LITTLE OR NOTHING TO INCREASE THE OFFENDER'S AWARENESS OF THE LAW OR THE NATURE OF CONSTITUTIONAL DEMOCRACY. SIX STAGES OF LEGAL/MORAL DEVELOPMENT ARE OUTLINED, WHICH RANGE FROM THE MOST ELEMENTARY (LAW CONCEIVED IN TERMS OF CONCRETE PRESCRIPTIONS), TO THE MOST ADVANCED AND ABSTRACT (LAW) SEEN AS EMBODYING IMPLIED JUSTICE PRINCIPLES OF SOCIAL-CONTRACT). THIS PROJECT SOUGHT TO INCREASE THE MORAL DEVELOPMENT OF INMATES BY CREATING A SETTING WHICH WOULD BE PERCEIVED AS LEGITIMATE BY INMATES AND STAFF AND WHICH WOULD STIMULATE SOCIOMORAL THINKING. A COTTAGE AT THE NIANTIC STATE FARM WAS ESTABLISHED IN WHICH THE INMATES HAD RESPONSIBILITY FOR SELF-GOVERNMENT, DISCIPLINE, AND RULE-MAKING. AFTER OPERATION OF THE PROGRAM THE MORAL REASONING ABILITY AND POST-RELEASE ADJUSTMENT OF THE DEMOCRATIC COTTAGE INMATES WAS COMPARED WITH A CONTROL GROUP OF TRADITIONAL TREATMENT INMATES. THE RESULTS INDICATED THAT AN INTERVENTION DESIGNED TO ALLOW INMATES DEMOCRATIC CONTROL WITHIN AN INSTITUTION COULD FACILITATE MORAL CHANGE AMONG INMATES. INITIAL RECIDIVISM RESULTS WERE ALSO ENCOURAGING, SHOWING LOWER RATES FOR MODEL COTTAGE PARTICIPANTS. THE IMPLICATIONS OF THESE FINDINGS FOR CONTINUING PRISON REHABILITATION EFFORTS ARE EXAMINED.