THE AUTHOR FIRST PRESENTS A REVIEW OF THE LITERATURE ON INMATE ORGANIZATIONS, INMATE OPPOSITION, FORMAL INMATE STRUCTURES, AND MODELS FOR FORMAL INMATE ORGANIZATIONS. THE INMATE ORGANIZATION INVESTIGATED IN THIS RESEARCH WAS AN INMATE-RUN, VOLUNTARY PROGRAM FOR DRUG ABUSERS WHICH IS BASED ON THE SYNANON MODEL. THE METHODS USED TO STUDY THE ORGANIZATION INCLUDED PARTICIPANT OBSERVATION FOR A PERIOD OF 14 MONTHS, AND QUESTIONNAIRES AND PERSONAL INTERVIEWS WITH 'FAMILY' MEMBERS. INFORMATION WAS GATHERED ON THE RESPONDENTS' PERCEPTIONS OF INSTITUTIONAL ARRANGEMENTS, THEIR PERCEPTIONS OF INSTITUTIONAL PERSONNEL, AND THEIR INTERACTIONS WITH OTHER 'FAMILY' GROUP MEMBERS. IT WAS FOUND THAT THE FAMILY GROUP MEMBERS EXHIBITED A HIGH DEGREE OF SOLIDARITY, FAIRLY HIGH LEVELS OF OPPOSITION TO THE INSTITUTION, AND APPARENT SUCCESS IN REDUCING POST-INSTITUTIONAL RECIDIVISM. THE AUTHOR CONCLUDES THAT: 1) INMATE GROUPS MAY DISPLAY HIGH LEVELS OF PRIMARY GROUP INTEGRATION AND STILL DISPLAY OPPOSITION TO STAFF AND INSTITUTION; 2) INMATE OPPOSITION MAY APPEAR IN INSTITUTIONS WHICH EMPHASIZE TREATMENT GOALS; AND 3) OPPOSITION DOES NOT NECESSARILY PRECLUDE EFFECTIVE TREATMENT. IMPLICATIONS OF THESE FINDINGS TO CORRECTIONAL PROGRAMS AND POLICIES ARE BRIEFLY DISCUSSED.