Among the most promising alternatives to traditional adversarial rulemaking now being explored in a number of Federal agencies is 'negotiated rulemaking.' This procedure contemplates an informal process of bargaining among parties affected by a proposed regulation. The procedure usually takes one of two forms: in the first, the agency merely acts as an overseer of the negotiations; in the second, the agency participates in the negotiations. Negotiated rulemaking offers several potential advantages over traditional adversarial rulemaking; it may increase the acceptability of the rule promulgated by the agency, and the parties may be more likely to address all aspects of a problem in attempting to formulate a solution. There are, however, practical and legal constraints to the procedure's use; the most notable of these is the statutorily and judicially imposed requirement for 'open' agency proceedings. Other alternatives to the adversary process may be used to resolve disputes that have reached the litigation stage. Several agencies, including the Department of Justice, are using, or preparing to use, arbitration. Mediation has also been used as an alternative to or prerequisite for litigation. Other alternatives to dispute resolution are discussed, and ways of encouraging the Government's more effective use of alternative means of dispute resolution are suggested. Possibilities for Federal action to expand the use of alternative dispute mechanisms include making the administrative process a more effective means for resolving disputes, developing a mechanism to give U.S. attorneys a greater incentive to resolve disputes in a cost-effective manner, developing a clearinghouse to collect, process, and disseminate information on the use of alternative means of dispute resolution in Government cases, and enacting legislation to facilitate the formation of negotiating commissions and clearly give agencies authority to use alternative techniques. In turn, agencies must promulgate regulations to give administrative law judges and other government officials discretion to request that parties use alternative means of dispute resolution. Sixty-eight references are included.