This text provides an updated overview of the development of private sector involvement in penal practice in the UK, North America, Europe and Australia. It describes the first 18 months in the life of Wolds Remand Prison, the first private prison in Britain. This empirical study includes: a look at the daily life of remand prisoners; an assessment of the duties and morale of staff; a comparison of the workings of Wolds with a similar remit and population; a discussion of some of the practical and theoretical issues to have emerged from contracting out; an examination of the ethical issues surrounding the whole privatization debate; and a consideration of the implications for the future of the prison system and penal policy.