This project is a joint initiative of the MDBC and the cotton industry to determine an appropriate model for the introduction of an industry wide environmental audit and certification scheme. The project is a component of a Murray-Darling Basin Commission (MDBC) programme to investigate the “Feasibility and benefits of introducing an appropriate audit and certification model to foster better management practice in natural resources management in the irrigation regions across the Murray-Darling Basin”. Another component of the MDBC programme is investigating related preliminary issues for the rice, dairy and viticulture irrigation industries, as well as Land and Water Management Planning Groups, Rural Water Authorities, Municipalities and Catchment Authorities throughout the Murray-Darling Basin. This project builds on the extensive work on environmental management that has already been undertaken in the cotton industry by the Cotton Research and Development Corporation (CRDC), and Cotton Australia. These organisations have played leading roles in developing and implementing environmentally responsible practices on cotton farms. In particular, CRDC and Cotton Australia have been responsible for the success of the industry’s programme for the safe use of pesticides, the BMP Programme. This report highlights the importance of implementing a comprehensive environmental programme in the cotton industry, and outlines the features considered essential for an effective industry programme. The report concludes that a certified industry environmental management system already introduced in the Executive Summary can effectively build on the current industry environmental programme, ensuring that current and future environmental and associated issues facing the industry continue to be properly addressed. The report outlines the advantages of developing the BMP Programme in line with an EMS, as well as the costs that this would entail. Recommended actions and timeframes for the implementation of an industry EMS are also included.