A participatory action research (PAR) project was implemented in the New South Wales dairy industry. Six regional dairy groups were given funding to investigate issues relating to management of the feedbase. Facilitated meetings in the regions identified limitations to local systems and how these limitations could be addressed. Local groups then implemented research of relevance to their systems. Activities varied but groups were guided by the principles of PAR. Regional groups consisted of farmers, government extension and/or research staff, processors and other stakeholders. A leadership team, consisting of representatives from each of the regional groups and other stakeholders, was formed to administer the project and assist groups in using the PAR approach. Evaluation of the project indicated high levels of participation in all regions and a strong sense of ownership of the project and/or project work. The most commonly mentioned outcome in the groups was what they learned as a result of involvement. The project and its evaluation are discussed in relation to PAR principles, the outcomes from the approach, and lessons learnt for improving the success of PAR.