Water issues are a feature of public debate in Australia. The increasing privatisation of water and changes to water allocation systems are resulting in change, often referred to as water "wars" (de Villiers, 1999). The Australian dairy industry uses 25% of the surface irrigation water in Australia. How does a rural industry like dairying negotiate a future? What is the role of broker professions like extension in supporting change in this context? We focus on three critical issues to address these questions: farm-level adaptation; new technologies; and balancing environmental and productive water-use. Two case studies of farm decision-making and advisory practice suggest that managing complexity in water issues requires learning processes at three levels: farmer-advisor; advisors-policy; advisors-other disciplines-policy. We conclude there is a need for a framework to guide an ethical response to water policy, bringing farm adaptation and advisory practice to implement change. (Contains 1 figure.)