In May 1997, as the first step, the South Australian Minister for Environment and Natural Resource, the Queensland Minister of Environment and the Queensland Minister for Natural Resources signed a Heads of Agreement for the Lake Eyre Basin. The Commonwealth Minister for Environment also signed as a supporting party to the Agreement.

This Agreement provided for the development of a formal inter-governmental Agreement for the management of the water and related natural resources of the Basin in accordance with the principles of integrated catchment management and ecologically sustainable development.

The process was consistent with: South Australia's policy for the Lake Eyre Basin which envisages the Basin as a nationally acclaimed example of cross jurisdiction integrated natural resources management, biodiversity and sustainable water management; Queensland's objectives for the sustainable management and use of the Lake Eyre Basin's natural resources; and the Commonwealth's objectives for the integrated catchment management and sustainable use of the water and related resources of the Lake Eyre Basin along with the protection of the Basin's water-related values.

The process for developing the Agreement included distribution of a discussion paper with public consultation and review. This was completed and the three governments signed the formal Lake Eyre Basin Agreement in October 2000 at Birdsville.

While the Heads of Agreement and the subsequent Inter-governmental Agreement were signed by the Commonwealth, South Australia and Queensland, the opportunity is there for New South Wales and the Northern Territory to participate if they wish.