One issue pertains to legislation relating to drug paraphernalia, which has been retained in several Australian States and territories. These laws have stimulated the discarding of needles after use, often in public places. This has threatened public support for the expansion of needle and syringe exchange programs. A second issue is police efforts against cannabis use, which have produced a dramatic increase in cannabis prices and a decrease in availability. This has contributed to an apparent cross substitution from cannabis to injectable substances, including heroin. A third issue concerns the regulated supply of currently illicit substances. A high degree of public support for reform in this area has been shown in public opinion polls. A recent workshop (April 1989) on "AIDS and Drugs Policies for the Early 1990's," attended by representatives of all States and the Australian Capital Territory, considered various options within the framework of decriminalization and legalization. Guidelines were developed for any legal system of drug supply.