The system is called Barangay Justice--after the local communities in which it operates--and was organized through the efforts of a commission of Philippine jurists and lawyers. A barangay captain appointed by the central Government hears and settles cases as the initial step in the process. If the barangay captain cannot reach a decision, the case is referred to a panel of local community members selected by the captain for their integrity and competency in settlement dispute. The members of this committee serve 2-year terms without compensation. The barangay also performs administrative functions and maintains records for the system. Lawyers are not permitted as formal counselors; however, they may act as mediators or conciliators. The system was created to settle criminal cases which are punished by minor fines or by prison terms of 30 days or less. Sample cases handled by barangays are described and photographs are included.