Natural resource management relies on the use of resource, economic an
d production data, which are often available at various non-comparable
scales. This causes serious problems in data interpretation and on th
e availability and cross-compatibility of official data for detailed m
odelling and analysis. Integration of the spatial analytical capabilit
ies of Geographic Information Systems and the constraint optimization
power of mathematical programming facilitates the generation of compos
ite data sets for extensive geographic regions. Integrated modelling o
ffers the capacity to examine the effects of interacting properties of
economic and natural systems. This paper presents an application of a
modelling system for the assessment of land degradation costs in exte
nsive areas of the stare of New South Wales, Australia. It highlights
the potential of the system to evaluate the feasibility of policy alte
rnatives and program options at a broader regional level.