The three main categories of laws that regulate the purchase and sale of sex are laws that punish prostitutes for selling sex, laws that punish persons involved in the management and organization of prostitution, and the uncommon laws that punish purchasers of sex. It is not illegal to sell sex in Australia, but most jurisdictions have passed laws against specific forms of prostitution. The discussions revealed that police policy on prostitution varies between jurisdictions. Police throughout Australia complained of the difficulties associated with enforcing prostitution laws. In addition, prostitutes in most jurisdictions complained that vague laws regarding street prostitution gave police broad discretion. They also regarded the law dealing with prostitutes' earnings as misguidedly paternalistic and felt that other laws adequately protected prostitutes from coercive and exploitative behavior. Findings indicated that prostitution laws are ineffective, that women are working in unsafe conditions in some jurisdictions, and that harassment by police is a problem in other jurisdictions. Policy options include criminalization, legalization, decriminalization, and decriminalization with controls. This last option represents a reasonable working compromise among prostitutes, clients, residents, and the community. Tables and 20 references