A review of the growth of interest arbitration in various state and local jurisdictions, and the types of and legal challenges made to such arbitration. The author examines concerns about whether interest arbitration will have a chilling or narcotic effect on bargaining. No serious adverse effects are found, but improvements are recommended: including legislative listing of alternative forms of dispute resolution, reserve voting for the neutral on a tripartite board, arbitration of permissive and not just mandatory subjects of bargaining, and use of appeals boards and “final offer package.”