With the demise of the hands off doctrine of court intervention in prison operations, the courts have taken a more active role in reviewing correctional facility conditions and in ordering changes. The negotiated settlement has been recognized as one way to arrange these changes. Correctional authorities usually prefer to comply with court decisions rather than force the courts to enforce their rulings. In addition, the costs of protracted litigation continue to rise. Moreover, recent court decisions have made the losers in civil rights cases responsible for the attorneys' fees of prevailing parties under certain conditions, there is considerable impetus for prison officials to negotiate agreements with litigating prisoners. The process of settlement is illustrated by the negotiated settlement arranged between South Carolina prisoners and the Department of Corrections over a lawsuit concerning overcrowding, lack of security, and the physical deterioration of a prison. The agreement limited population size, required additional guards, specified renovation and new facility construction, and established a classification plan. Twenty case citations and two references are given.