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The historical development of Australian wage policy from the turn of the century to the 1950s is traced, with the focus on the growth of institutions and procedures for wage fixation. While state and federal bodies are covered, special attention is given to the constitution of the Commonwealth Court (as it then was) and the varying wage decisions it made. The concept of "flow-on" did not achieve its modern meaning or ease of application till 1941: this sup ports the contention that the techniques of wage determination develop slowly. Many legislative proposals for change have been made but very few have been put into practice; an analysis of the successes and failures reveals the evolving relationship between the government and the arbitration system. The conclusion is that the pursuit of industrial peace through consistency and system is favour able to the development of a wage policy.