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This paper examines the historical evidence for the widely held view that vegetation communities in the semi-arid woodlands were significantly more open prior to European settlement. It is postulated that there were originally multiple stable vegetation states maintained by interactions between light grazing by native herbivores, periodic fire and browsing of post-fire shrub regeneration by medium-sized marsupials. Finally, preliminary results from research currently in progress aimed at developing integrated shrub management strategies are discussed in the context of attempting to restore a more appropriate, and productive, balance between overstorey and understorey components that also more closely resembles pre- European vegetation patterns.