Abstract The implementation of the 1980 Low-level Radioactive Waste Policy Act (LLRWPA) depends on the creation of interstate compacts. Compact formation is a public goods problem. For mation may be impeded by opposition from elements in the federal government, the inability of state governments to resolve problems of conflicting political interests, and the possibility of extensive and unfruitful negotiations. These obstacles may be overcome if fortuitous circumstances exist and entrepreneurial behavior is applied. Guidelines that entrepreneurs may use to facilitate compact formation are relying on the exclusive character of incentives, forming compacts with a small number of members, taking advantage of inequality of interests among prospective members, using solidary incentives to promote cooperation, relying on existing regional organizations to build support, em ploying a game metaphor to understand the stakes of the participants, and making each party subject to an agreement feel as if it were a winner.