The Nursing Home Reform Section of the Omnibus Budget Reconciliation Act of 1987 (OBRA '87) has caused sweeping changes in the nursing home industry. This legislation was developed in response to the failure of an industry to provide quality care to nursing home residents, and it is changing the model of care from a medical emphasis to quality of life for residents. Much of the focus is on restoring self-determination and dignity for residents of nursing homes. In effect, OBRA '87 is narrowing the gap between community and nursing home life. This review (a) explores the development of OBRA '87 and its mandates regarding activities in nursing homes, (b) presents research pertaining to benefits of increasing personal control in recreational activities of older individuals who are institutionalized, and (c) proposes specific practical interventions and suggestions for recreational programming which will enhance personal control and facilitate empowerment among residents of nursing homes.