Abstract: The Australian desert economy is a $90 billion dollar economy. However currently, there is a reliance on a few industry sectors in delivering its output. About 60% of the gross revenue of the desert comes from only three sectors - mining, manufacturing and agriculture. This can pose a risk in light of climate change, increasing interconnectedness of financial markets and the fact that the resources boom is unlikely to be an on-going phenomenon. How can desert economies mitigate risks associated with over-reliance on a few select sectors and ensure continued growth in the long run? ## This paper discusses the structure of the desert economy and strategies to mitigate the risks of overdependence on a few industries. Using a regional input-output model, the study shows which industry sectors are likely to provide the highest multiplier impacts on the economy with implications on strategic investments for sustained growth and development of desert regions in Australia.