In accordance with section 28 of the Primary Industries and Energy Research and Development Act 1989 (PIERD Act), I have pleasure in presenting to you the annual report of Land & Water Australia for 2005-06. The report has been prepared in accordance with the Primary Industries and Energy Research and Development Act 1989, the Commonwealth Authorities and Companies Act 1997 (CAC Act) and the Commonwealth Authorities and Companies (Report of Operations) Orders 2005.