As we enter the 21st Century, the cotton industry and its research base are riding the “third wave” – a period of new challenges which must be tackled cooperatively. During the 1950s cotton production in Australia was practically non-existent, even though the crop had been grown since the time of the First Fleet. The modern industry began in 1961 when two Californian growers planted a commercial crop at Wee Waa on the Namoi River, sparking the “first wave”. Prior to 1980 Australian cotton producers were completely dependent on American varieties. The “second wave” came with the development of the CSIRO’s cotton breeding program, enabling the gradual introduction of new varieties tailored to Australian conditions. By the 1990s Australian varieties dominated the market and were delivering improved yields, fibre quality and agronomic characteristics. The Australian cultivars enabled the industry to expand significantly and rapidly. In the last 20 years the area planted to cotton has tripled while production has grown from 435,000 bales in 1980 to 3.4 million bales in 2001 – an increase of 700 per cent. This would not have happened without a strong and coordinated R&D effort.