We construct supersymmetric theories in which the correct scale for electroweak symmetry breaking is obtained without significant fine-tuning. We calculate the fine-tuning parameter for these theories to be at the 20% level, which is significantly better than in conventional supersymmetry breaking scenarios. Supersymmetry breaking occurs at a low scale of order 100 TeV, and is transmitted to the supersymmetric standard-model sector through standard-model gauge interactions. The Higgs sector contains two Higgs doublets and a singlet field, with a superpotential that takes the most general form allowed by gauge invariance. An explicit model is constructed in 5D warped space with supersymmetry broken on the infrared brane. We perform a detailed analysis of electroweak symmetry breaking for this model, and demonstrate that the fine-tuning is in fact reduced. A new candidate for dark matter is also proposed, which arises from the extended Higgs sector of the model. Finally, we discuss a purely 4D theory which may also significantly reduce fine-tuning. © 2005 Elsevier B.V. All rights reserved.