The habitat and conservation requirements of the koala were investigated in 1996 in a 6400 hectare timber production forest at Pine Creek in the Coffs Harbour region of north-east NSW. Minimum koala density varied from 50 hectares per koala in plantation forest to 9 hectares per koala in high site quality native forest and averaged 15 hectares per koala throughout. The total koala population was estimated by spotlight counts to be 350 to 450 individuals. Variation in scat density (determined by counts in fixed area plots) was best explained by food tree species richness, forest association, forest structure and logging history. Koalas preferred structurally complex, uneven-aged forests with some mature and oldgrowth elements, a large basal area, and mixed species associations dominated by tallowwood, grey gum and forest oak. Koalas were least abundant in plantations and structurally uniform, blackbutt dominated regrowth native forests with a low tree species diversity. Trees of 40-80 cm dbh and stands with more than three koala food tree species per survey plot (50 by 50 m) were preferred. Historical timber harvesting practices involving low intensity harvesting of large diameter stems were successful in maintaining koala populations. Modern, high intensity harvesting practices including extensive gap clearfelling and Australian group selection that remove a high proportion of stand basal area and leave only small diameter stems (<50 cm dbh) are incompatible with koala conservation. Failure of SFNSW to embrace alternatives to high intensity harvesting practice has resulted in the transfer of most koala habitat in Pine Creek State Forest to Bongil Bongil National Park.