Jail industry is defined as "an industry that uses inmate labor to create a product or provide a service that has value for a public or private client and compensates inmates with pay, privileges, or other benefits." This workbook supported by the Bureau of Justice Assistance, Office of Justice Programs, U.S. Department of Justice offers guidance to those criminal justice professionals in developing a jail industry within their local or State jurisdictions. The workbook is divided into four chapters: (1) an overview and introduction to jail industries; (2) key development principles; (3) components of the development process; and (4) the workbook- a step-by-step guide. The fourth chapter is divided into three phases. The first phase, foundation decisions includes: identifying sources of guidance and policy, determine goals and objectives, determine what is allowed by State and Federal law, determine who should be served--public or private, determine the types of inmates available to work and the selection process, determine the methods for motivating inmates, determine where work can occur, and identify sources of assistance and resources. Phases two and three on development activities and business planning include: identifying sources of financing, determine who will manage and supervise the programs, determine how to coordinate with jail programs, security, and inmate classification, identify potential customers, plan to manage risk, prepare policies and procedures for operations, recordkeeping, and bookkeeping, and develop and implement a business plan for each industry. Exhibits, references, and resources