Three case studies of mediated negotiation in the public sector are summarized. Special attention is given to the roles played by the mediators in these cases, the difficulties of ensuring adequate representation of all stakeholders, and the problems of protecting the “public interest.” Criteria for evaluating mediated negotiation as a supplement to traditional legislative, administrative, and judicial means of resolving resource allocation disputes are offered. The techniques of labor mediation and mediation in international disputes are compared to see which are more appropriate for use in public sector resource allocation disputes.