The second year of the Cotton Catchment Communities CRC has seen a great deal of activity. With the administration and research management systems and policies well established, focus shifted from project development to project consolidation. The Cotton CRC now has 160 active projects under way in every cotton growing region in Australia. Strong collaborative partnerships between industry, catchment and community partners have ensured the direction and relevance of research and extension priorities. The Strategic Plan was revised in January 2007. Several goals were clarified and key performance indicators were defined more clearly. The Cotton CRC created a new goal for climate change and variability and the focus of precision agriculture was changed from research to adoption. The Cotton CRC attracted additional research funds for new projects from the Australian Greenhouse Office, Monsanto Ltd, the Condamine Alliance, Queensland Murray Darling Committee, Borders Rivers-Gwydir CMA, National Water Commission, Central West CMA, SACOA Pty Ltd and Land and Water Australia.U