The pastoral industry in northern Australia has been relatively stable over the past 100 years and has persisted despite a variable climate, uncertain markets and variable prices. However, change is occurring at a rapid pace and to stay economically viable and environmentally sustainable in the future the pastoral industry must deal proactively with the continuous cost-price squeeze and growing environmental awareness in society at large We contend that controlling these factors involves targeted intensification of effort to minimise costs, maximise opportunities to improve productivity, and demonstrated environmental standards to increase product value, building on the most effective use of new communications technologies, a better integration with the values of other inhabitants of the region, and processes from continuous learning. Pastoralists will also need to be ever vigilant about external drivers of change, over which they have no control, and be prepared to adapt early to cope with these external influences.