Purpose: The purpose of this paper is to describe how, from 2004-2006, a New Zealand research team experimented with the "change laboratory" learning process to create a new method of government policy development and implementation, referred to as "practice-making". The apple industry in Hawke's Bay was chosen because of the level of tension among government agencies and small/medium-sized firms in the industry, particularly around the scarcity of seasonal labour, amid growing concerns about the possible collapse of the industry. Design/methodology/approach: The team stimulated a cycle of expansive learning among the network of activity systems in the industry. Laboratory participants were growers, labour contractors, pack house operators, quality controllers, horticultural consultants and government officials. The expansive learning cycle is a core concept in developmental work research (DWR) and cultural-historical activity theory (CHAT). Findings: Participants created a shared "object" for apple production and its government policy and regulation built around quality, making a substantive shift from adaptive learning to transformational learning, and creating a major redesign of the industry. Many of the new practices are now being implemented in the industry and government. Practical implications: The CHAT/DWR approach seems particularly well suited for complex problem solving in any network where there are intractable systems contradictions and a strong desire among participants to make real change. Originality/value: It is understood that this is the first time a change laboratory process has been used for government "practice-making" with industry, in contrast with traditional policy development and implementation that frequently does not address systemic problems. (Contains 4 figures and 4 notes.)