The female prison population has a higher level of psychiatric morbidity than the comparable male population. Females constitute about 3 percent of the total prison population in England and Wales. Because of this relatively small population, any increase in the level of psychiatric morbidity over a short period of time has serious consequences for policies and management of female prisoner establishments. Specific sections of the 1983 Mental Health Act focus on remand to a hospital for treatment of an accused person appearing before the court, and interim hospital orders which can be applied if the court is satisfied with the evidence of two medical practitioners that the accused is suffering from a mental disorder. A survey of the implementation of these sections is cited. The author suggests that the placement of mentally ill females in the penal system should be reviewed carefully in relation to discretionary police powers, bail with a condition of hospital residence for psychiatric evaluation, and civil orders under the Mental Health Act should noncustodial sentences be passed. Appendixes provide additional information on the Mental Health Act, powers of courts, and the treatment of mentally ill offenders in the prison system. 14 references, 12 tables, 3 figures.