In recent years imprisonment has been used increasingly for a wide ran
ge of nonviolent and petty offenses committed by women. Among incarcer
ated women, particularly those who are pregnant or parenting, substanc
e use and its deleterious consequences are often exacerbated by impris
onment. Women who have been identified as chemically dependent are als
o at high risk for losing custody of their children. In California, th
e Options for Recovery (OFR) treatment program provided an alternative
to incarceration or relinquishment of custody of children for chemica
lly dependent pregnant and parenting women. This three-year pilot proj
ect offered alcohol and other drug abuse treatment and case management
to these women, and included special training and recruitment of fost
er parents for their children. Findings from a three-year, multimethod
evaluation study showed that women who were mandated to OFR treatment
programs were more likely to successfully complete treatment than wom
en who had enrolled in OFR voluntarily. An economic analysis of the co
sts associated with women in OFR compared with the combined costs of i
ncarceration and alcohol and other drug abuse treatment produced a rat
io in favor of OFR. Additionally, some innovative service alternatives
for women mandated to treatment were developed during the project. Th
e impact of such changes have implications for improving women's and f
amily health.