The political and ideological basis for the organization of space within psychiatric institutions is rarely made explicit, yet space shapes the behavior of both inmates and staff. This article describes the traditional 19th century English asylum and its counterpart in Jacksonian America, as madness-maintaining institutions designed to incarcerate social undesirables. In contrast, nontraditional 20th century institutional architecture based on the Dutch concept of "dwelling," and designed to promote normalcy, is described. A modification of the Dutch model, built in Israel, is illustrated.