This panel study examines trends in recycling participation, diversion, and costs among a national sample of municipal programs in 1989 and 1996 and identifies the recycling policies associated with changes in performance. This study finds that local recycling officials made recycling performance comparisons with other jurisdictions and engaged in a rational process of policy experimentation to fine-tune the performance of their programs during the 1990s. The policies that distinguished higher performing recycling efforts included mandatory recycling, curbside collection and free recycling bins, operating composting programs, and banning disposal of yard wastes. Recycling participation increased about 36% to a mean level of 73% by 1996. Diversion increased by 111% to a mean level of 33% by 1996. The total costs for recycling programs rose an average of 220%, but many cities with curbside collection also improved efficiency to the point where unit recycling costs were competitive with the costs of solid waste collection and disposal.