This case demonstrates the value and the risks of public dispute resolution efforts. In 1997, the Texas legislature accidentally repealed Senate Bill 1704, which exempted thousands of acres of undeveloped land from Austin, Texas' stringent water quality guidelines. Faced with the near-certainty that the law would be reinstated during the next legislative session, Austin's Mayor Kirk Watson and council assembled a focus group of developers and environmentalists to help in developing a local ordinance that would satisfy both sides and preempt further legislative meddling. The law was scheduled for repeal in only six weeks, and public scrutiny was intense.

Case A describes the political and legislative background, the decision to form a focus group, and the group's deliberations and final product - a draft ordinance designed to replace the state law and balance the needs of developers and environmentalists. Case B briefly describes public reaction to the draft. Lastly, Case C describes the mayor and council's efforts to improve the draft and resolve the dispute.

This case shows why integrative bargaining is more difficult than mere compromise. It demonstrates the potential and risks of public dispute resolution processes, and the need for public managers and policymakers to examine the details closely to determine what each side can and cannot afford to give up. It has been used successfully in courses on local government policy and management, leadership, and dispute resolution.