Mediator discretion in community mediation is inevitable yet often invisible, which can obscure legitimacy, accountability, and bias in publicly funded or stateâadjacent settings. This conceptual design paper uses integrative synthesis, drawing on streetâlevel bureaucracy, procedural justice, and dispute system design, to derive a practiceâready and auditable way to govern withinâsession discretionary process moves without disrupting conversational flow or capturing confidential narratives. I define transparent mediator discretion as the practice of making discretionary process moves visible through brief reasonâgiving, authorizing them through bounded party choice, making them reversible through a normalized reset pathway, and documenting them through minimal coded entries. The paper's results are design outputs: a fairnessâbyâdesign framework centered on a brief rationaleâandâconsent loop, a proportionality ladder, a menuâbased set of move options, and a codeâonly documentation structure. Worked examples illustrate how the loop can be delivered as a human microâcompetency and supported by digital decision aids without replacing human judgment. I also specify falsifiable propositions, privacyâminimizing indicators designed to avoid narrative capture, and lowâcost evaluation designs that can be implemented in lowâresource programs. Next steps include piloting in both voluntary and courtâconnected contexts, testing safeguards for stalemate and power imbalance, and assessing how AIâassisted support can preserve party choice, reversibility, and accountability under human oversight.