The population increase has resulted in double-celling of inmates, inmate idleness, declining staff-to-inmate ratios, and heightened potential for violence. Higher conviction rates and prolonged parole eligibility periods have contributed to population increases in FY 1981 and FY 1982. Prison populations will probably continue to increase because of recent developments, including increased minimum sentences and a decline in the number of paroles granted. In the summer of 1984, the number of inmates will probably exceed the maximum available capacity. Four additions to capacity should be complete in the summer of 1984; others, in January 1985. By the end of 1987, the projected population will again reach maximum available capacity. The two major strategies available to address the situation are further additions to capacity and actions to reduce the demand for incarceration. Capacity expansion involves construction of expensive new facilities, while alternatives for reducing demand focus mainly on sentencing revisions and, to a lesser extent, parole or release policies. Tabular data and chapter references are included. (Author summary modified)