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Disputes between government bodies are usually settled through either political bargaining or litigation, but a third method has been successfully utilized in Virginia. Since 1980, a number of municipal annexation disputes have been settled using formal mediation as a tool. The authors draw on their experiences in mediation and local government to explore the formal interactions of adversaries and to analyze the patterns of interpersonal exchange–the vital subjective dynamics that determine the outcome of negotiations. They discuss the important roles a third party plays by conveying and...