Precision agriculture uses proximal and remote sensor surveys to delineate and monitor within-field variations in soil and crop attributes, guiding variable rate control of inputs, so that in-season management can be responsive, e.g. matching strategic nitrogen fertiliser application to site-specific field conditions. It has the potential to improve production and nutrient use efficiency, ensuring that nutrients do not leach from or accumulate in excessive concentrations in parts of the field, which creates environmental problems. The discipline emerged in the 1980s with the advent of affordable geographic positioning systems (GPS), and has further developed with access to an array of affordable soil and crop sensors, improved computer power and software, and equipment with precision application control, e.g. variable rate fertiliser and irrigation systems. Precision agriculture focusses on improving nutrient use efficiency at the appropriate scale requiring (1) appropriate decision support systems (e.g. digital prescription maps), and (2) equipment capable of varying application at these different scales, e.g. the footprint of a one-irrigation sprinkler or a fertiliser top-dressing aircraft. This article reviews the rapid development of this discipline, and uses New Zealand as a case study example, as it is a country where agriculture drives economic growth. Here, the high yield potentials on often young, variable soils provide opportunities for effective financial return from investment in these new technologies.