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The conservation of biodiversity in the rangelands cannot occur solely in National Parks - the arid lands environment is too risky and too extensive. Deciding what level of protection is needed outside parks must be based on an understanding of how the rangelands function. Many plant and animal species in the rangelands depend on special resources at critical times, like drought, but there is evidence that the persistence of native plants and animals outside critical refugia can be compatible with appropriate pastoral management. We therefore outline how an hierarchical design of rangelands reserves could be integrated with other land uses; complete insulation of major refugia areas would be combined with special management of important smaller areas at critical times, and with sustainable pastoral or other management on the broader landscape. We offer this design framework for discussion as one element of the long term development of a National Rangelands Management Strategy.