The primary factors which are likely to mould future non-urban land use patterns in Australia are identified. Over the past three decades the rate of increase in land productivity in Australia has been higher than for any other OECD country. Land degradation does not appear to have seriously threatened agricultural output over the last 45 years. However, there is cause for concern that land degradation, attributable to past activities, may only now be exerting a significant impact on productivity in some regions. Many of the services provided by natural resources have been underpriced; consequently, there has been a bias in agricultural research towards technologies that enhance on-site productivity, but which impose excessive external social costs. Underpricing of native trees from state-owned and managed forests appears to have caused excessive exploitation of these forests and lowered the establishment of softwood and hardwood plantations. Many important land use and land cover issues remain unresolved in Australia's rangelands, including questions relating to the optimum grazing pressures, the role of fires in the suppression of unpalatable shrubs and appropriate management strategies for controlling numbers of large kangaroos and rabbits and protecting the natural habitat of threatened species of native animals. The riparian zone, which acts as a crucial buffer between rivers and their catchments, has been one of the most neglected environments in Australia, possibly because river banks, floodplains and wetlands do not fit neatly into the category of land or water. It is widely accepted that the aboriginal peoples must be involved in seeking to achieve the sustainable use of our natural resources. How to achieve the appropriate participation and involvement of aboriginal peoples is a problem that is yet to be fully resolved. In many respects, renewable natural resource systems in Austraiia are unique. Knowledge creation and application will be a most important resource for the future management of our agricultural forestry and natural resource systems. The solutions to many of the major renewable resource problems do not depend on technology alone. Institutional changes and incentive structures are required that recognize and take account of the pervasive and complex interrelationships between human reactions and responses in their production and consumption activities and the environment.