The B-wing program developed at the Butner institution treats inmates with difficulties in functioning in the open population in a minimally restrictive environment designed to foster the development of coping skills. The B-wing is a dormitory section which isolates its residents from the rest of the institution most of the day. The wing can house up to eight residents. Each inmate involved in the program is housed in a single room, participates in a therapeutic community program structure in which biweekly meetings are held to discuss inmate and staff concerns, and receives either individual or group therapy. Graduated work assignments allow participants to progress from cleaning their own rooms and a small section of the wing to more complex tasks. The inmates eat meals in the wing initially, but are encouraged to eat with the general population more frequently as they progress. Psychiatric consultation and medication are also available for program participants. A systematic referral process is used in selecting participants. During its first year of operation, the program served 23 inmates, usually young unmarried males without high school diplomas who had been diagnosed as schizophrenic. About 80 percent of the participants eventually returned to the population, and only 16.7 percent of these returnees reentered the program. The program represents a least restrictive treatment approach which may be applicable to other institutions. Tabular data, charts, footnotes, and 12 references are provided.