Carbon sequestration using tree farming is likely to produce dramatic changes to Australia's rural landscapes. Under a drying climate in southern Australia, there is potential for a collision between carbon farming, stream water yields and effects on terrestrial and aquatic biodiversity. The project is the first to bring together specialist investigators from appropriate disciplines, allied with partner investigators with complementary skill sets (e.g. ecological economics). The project will create important new knowledge about how these three factors will interact under several scenarios of uptake of carbon farming over the next century taking into account time-trajectories of climate change and vegetation maturation.