Two relatively new EPA policies encourage the inclusion of pollution prevention in regulatory enforcement settlements. The advantages to a firm include reduction or elimination of environmental problems at the source (thus decreasing reliance on end-of-pipe controls), enhanced prospects for future compliance, and a potential for a reduction in the assessed penalty. We discuss the factors that influence both EPA and firms to include pollution prevention in enforcement settlements, characterize the process in a few exemplary cases, and recommend ways to enhance and expand these activities. The research presented focused on case study analysis of 10 recent EPA-negotiated enforcement settlements that included chemical substitutions, process changes, or closed-loop recycling