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A contemporary survey (1986-87) of the distribution of the koala in NSW showed that they mainly occurred 011 the north coast, although they have an extensive but fragmented distribution west of the great Divide and in the southern half of the state. Koalas were uncommon at the majority of localities. Healthy koalas were reported in 91.8 of their range and the conclusion was drawn that the much publicized disease issue is not the primary determinant of the distribution of the koala in NSW. Koalas occurred mainly on rural lands rather that, within either the National Parks and Wildlife Service or Forestry Commission estates. Historical records show that the koala distribution was more extensive and less fragmented prior to the first survey in 1949. The distribution of the koala is closely linked to the tree species of high nutrient soils such as those of river valleys, which have been extensively cleared for agriculture. Since koalas are primarily animals of farmland, long-term management programs need to include the widespread protection of habitat on rural land with the co-operation of the rural community.