In this paper we study connection admission control (CAC) in IEEE 802.11-based ESS mesh networks. An analytical model is developed for studying the effects of CAC on mesh network capacity. A distributed CAC scheme is proposed, which incorporates load balancing when selecting a mesh path for new connections. Our results show that connection level performance, including both average number of connections and connection blocking probability, can be greatly improved using the proposed mechanism compared to other admission control schemes.