DISEASE CHARACTERISTICS:

* Diagnosis of newly diagnosed or recurrent transitional cell bladder cancer meeting the following criteria:

* Ta or T1 primary tumor
* Grade 1 or 2 disease
* No more than 2 recurrences (except for index tumor) within the 18 months prior to the index tumor's transurethral resection of the bladder tumor (TURBT)

* Index tumor post-TURBT must meet the following criteria:

* Ta or T1 tumor without any prior tumor in situ, grade 3 (high grade) disease within 2 years prior to index tumor TURBT, or invasion of the muscularis propria (stage ≥ T2)
* Grade 1 or 2 disease (similar to papillary urothelial neoplasm of low malignant potential and low-grade bladder cancer)
* Not a candidate for a therapy other than TURBT (e.g., a series of instillations of intravesical immunotherapy \[e.g., BCG\] or intravesical chemotherapy, or cystectomy or partial cystectomy)
* Negative upper tract imaging studies within 1 year (365 days) prior to study entry

* Imaging studies may be performed after registration provided it is done prior to TURBT on the day of treatment
* No urothelial cancer of the prostate or more distal urethra (or urethra at all in women) as assessed by endoscopy
* Must have a negative urine culture (less than or equal to 10,000 col/mL, mixed flora-likely contamination) OR negative urine analysis for infection AND negative nitrates on reagent strip, ≤ 10 white blood cell count (WBC)/high-power field, and no rods or organisms on examination of spun urine sediment OR an automated or visual reagent strip urinalysis that is negative for leukocytes and nitrates within the past 28 days
* TURBT planned within the next 28 days and planned treatment within 3 hours after TURBT

PATIENT CHARACTERISTICS:

* Zubrod performance status 0-1
* Not pregnant or nursing
* Fertile patients must use effective contraception
* No other prior malignancy except for any of the following:

* Adequately treated basal cell or squamous cell skin cancer
* In situ cervical cancer
* Adequately treated stage I or II cancer from which patient is in complete remission
* Any other cancer from which patient has been disease-free for 3 years

PRIOR CONCURRENT THERAPY:

* See Disease Characteristics
* More than 145 days since prior intravesical therapy