We present a new class of distributed key generation and recovery algorithms suitable for group communication systems where the group membership is either static or slowly time-varying, and must be tightly controlled. The proposed key generation approach allows entities which may have only partial trust in each other to jointly generate a shared key without the aid of an external third p arty. The group collectively generates and maintains a dynamic group parameter, and the shared key is generated using a strong, one-way function of this parameter. This scheme also provides perfect forward secrecy. The validity of key generation can be checked using veri able secret sharing techniques. The key retrieval method does not require the keys to be stored in an external retrieval center. We note that many Internetbased applications may have these requirements. Ful llment of these requirements is realized t h r ough the use of fractional keys|a distributed t e chnique recently developed to enhance the security of distributed systems in a non-cryptographic manner.