Traditional administrative, legislative and judicial processes often fail to resolve public sector disputes effectively. This article examines mediated negotiation as one of several possible "alternative dispute resolution" processes. Based on reflections on past mediation efforts, the authors propose a list of generic steps to guide future efforts. In addition, they examine six special process innovations applied in a recent public sector negotiation in Malden, Massachusetts. The authors identify the potential advantages and disadvantages of each innovation, and conclude by describing the types of public sector disputes in which mediated negotiation and the process innovations might be most useful.