Abstract An important aspect in the specification of distributed systems is the role of the internal (or unobservable) operation. Such operations are not part of the interface to the environment (i.e. the user cannot invoke them), however, they are essential to our understanding and correct modelling of the system. In this paper we are interested in the use of the formal specification notation Z for the description of distributed systems. Various conventions have been employed to model internal operations when specifying such systems in Z. If internal operations are distinguished in the specification notation, then refinement needs to deal with internal operations in appropriate ways. Using an example of a telecommunications protocol we sho...