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This article summarises terms, characteristics and potential areas of application of mediation in the public sector. There is growing interest and demand for regulations that govern extrajudicial conflict. Between state and citizen, the new culture moves away from authoritative nature to cooperation and negotiation. Despite the potential of mediation there is too little systematic use. Mediation in the public sector depends on three factors for success: information being provided to the parties concerned, successful integration of mediation phases in public administration processes and qualified mediators.