The Kimberley region of Western Australia is one of the most prospective for a significant expansion of the Australian cotton industry into northern Australia. When developed, northern Australian production is estimated to be worth $750 million annually from a production base exceeding 200,000 ha. However, past failures with agricultural developments in northern Australia have demonstrated the need for in-depth research to identify sustainable cropping and pest management systems to suit the challenge of cotton growing in tropical Australia. The clear lesson from the past is that inadequate understanding of cropping systems and reliance on broad-spectrum insecticides is doomed to failure. To a large extent, successful industry growth will depend on environmentally acceptable pest management systems based on transgenic varieties. Sustainable cotton production in northern Australia will benefit the existing industry by expanding the production base to make the nation a more reliable and year-round producer of quality lint. The industry will also benefit directly from the IPM developments in northern Australia, which are likely to Q have applicability to current cotton producers