  We consider electroweak symmetry breaking in supersymmetric models with an
extra non-anomalous U(1)' gauge symmetry and an extra standard-model singlet
scalar S. For appropriate charges the U(1)' forbids an elementary mu term, but
an effective mu is generated by the VEV of S, leading to a natural solution to
the mu problem. There are a variety of scenarios leading to acceptably small
Z-Z' mixing and other phenomenological consequences, all of which involve some
but not excessive fine tuning. One class, driven by a large trilinear soft
supersymmetry breaking term, implies small mixing, a light Z' (e.g., 200 GeV),
and an electroweak phase transition that may be first order at tree level. In
another class, with m_S^2 < 0 (radiative breaking), the typical scale of
dimensional parameters, including M_{Z'} and the effective mu, is O(1 TeV), but
the electroweak scale is smaller due to cancellations. We relate the soft
supersymmetry breaking parameters at the electroweak scale to those at the
string scale, choosing Yukawa couplings as determined within a class of string
models. We find that one does not obtain either scenario for universal soft
supersymmetry breaking mass parameters at the string scale and no exotic
multiplets contributing to the renormalization group equations. However, either
scenario is possible when the assumption of universal soft breaking is relaxed.
Radiative breaking can also be generated by exotics, which are expected in most
string models.
