How is mediation different from arbitration?

In arbitration the neutral third party – called the arbitrator – controls the proceeding and will render a verdict, called an "award," much as a judge does. In mediation the third part – called the mediator – is there to assist the parties in their negotiations. He or she does not render a judgment or make an award. The mediator acts as a facilitator so that the parties can reach a mutually agreeable solution.