-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 QTSnb2sIx+fAOWmLOmb6Uw2pBwOqA2DVVfflmzjNT2d0g6haeDQAlgdd6CEcAI2O
 k69dLLuEyrae8GW8ApWPQg==

<SEC-DOCUMENT>0001179110-06-021483.txt : 20061113
<SEC-HEADER>0001179110-06-021483.hdr.sgml : 20061113
<ACCEPTANCE-DATETIME>20061113145201
ACCESSION NUMBER:		0001179110-06-021483
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061109
FILED AS OF DATE:		20061113
DATE AS OF CHANGE:		20061113

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNELL COMPANIES INC
		CENTRAL INDEX KEY:			0001016152
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-FACILITIES SUPPORT MANAGEMENT SERVICES [8744]
		IRS NUMBER:				760433642
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1700 WEST LOOP SOUTH
		STREET 2:		STE 1500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027
		BUSINESS PHONE:		7136230790

	MAIL ADDRESS:	
		STREET 1:		1700 WEST LOOP SOUTH
		STREET 2:		STE 1500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNELL CORRECTIONS INC
		DATE OF NAME CHANGE:	19960604

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PERRIN PATRICK N
		CENTRAL INDEX KEY:			0001225204

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14472
		FILM NUMBER:		061208208

	BUSINESS ADDRESS:	
		STREET 1:		CORNELL COMPANIES INC
		STREET 2:		1700 WEST LOOP SOUTH
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77027
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-11-09</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001016152</issuerCik>
        <issuerName>CORNELL COMPANIES INC</issuerName>
        <issuerTradingSymbol>CRN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001225204</rptOwnerCik>
            <rptOwnerName>PERRIN PATRICK N</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1700 WEST LOOP SOUTH, #1500</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77027</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Sr. VP &amp; Chief Admin. Officer</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Cornell Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-11-09</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2006-11-09</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>14218</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>17.91</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>36516</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Represents a disposition to the issuer upon the payment to the reporting person of the cash value of shares upon the vesting of benefits as of November 9, 2006 under the terms of the Cornell Company Deferred Compensation Plan.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Patrick N. Perrin</signatureName>
        <signatureDate>2006-11-13</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----