THE PURPOSE OF ESTABLISHING SEPARATE PSYCHIATRIC INSTITUTIONS IS TO IMPROVE THE INDIVIDUAL'S PSYCHOLOGICAL ADJUSTMENT, RELIEVE PROBLEMS IN MENTAL HEALTH AND CORRECTIONAL FACILITIES CAUSED BY THE PRESENCE OF MENTALLY ILL OFFENDERS AND PROTECT THE COMMUNITY. THE AUTHOR DISTINGUISHES BETWEEN ARGUMENTS IN FAVOR OF THIS PARTICULAR SOLUTION AND THE MORE GENERAL ARGUMENTS IN FAVOR OF IMPROVING PSYCHIATRIC SERVICES FOR INMATES. THE AUTHOR REFLECTS THAT THE INADEQUACIES IN PLANNING FOR THE CANADIAN PSYCHIATRIC CENTERS ARE SIMILAR TO THE FAILURES OF THE BRITISH MENTAL HEALTH ACT OF 1959. PRESENT PLANNING HAS DISREGARDED THE NEED FOR ADEQUATE SUPPORT IN THE COMMUNITY FOR RELEASED EX-OFFENDERS, NOR IS IT CLEAR THAT PSYCHIATRIC TREATMENT IS THE MOST APPROPRIATE FORM OF REHABILITATION FOR OFFENDERS. (AUTHOR ABSTRACT MODIFIED)