Abstract: The State of the Regions (SOR) is a report prepared by National Economics and published annually by the Australian Local Government Association. It is officially launched at the Regional Cooperation and Development Forum, held each June in Canberra. Every local government authority is allocated within a regional types or zone. The regional typologies consist of: Knowledge-intensive regions, Dispersed Metro, Independent City, Lifestyle regions, Resource Based and Rural Regions. The report provides a detailed analysis how these regions are performing and then analyses the likely consequences of current issues, be they demographic, climate change, or telecommunications in nature on the different types of SOR zones. The core objectives of the SOR are to: • Present the latest statistical indicators of how Australian regions are performing • Analyse the indicator trends in terms of growing equality and inequality between Australian regions • Make suggestions for the policy implications of current Australian regional performance • Steadily expand the indicators used to measure regional performance • Describe the reality of regional economics • Assist local government to understand their regions and to provide useful planning tools The State of the Regions report provides an annual stock-take of the economic well being of Australia's regions and their prospects for economic development and employment growth.