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Results from studies of the effects of grazing on native biota in rangelands have indicated a general relationship relating changes in species composition to grazing intensity based on distance from sources of drinking water. This relationship leads to concern about the persistence of the most grazing-sensitive species unless some areas are maintained for the needs of those species. Using current principles for the design of conservation networks, we have examined scenarios for the integration of pastoral land use with off-reserve conservation networks at regional scales in an arid region of S.A. Costs that might be associated with an integrated conservation network include: capital costs of fencing and bore management, and opportunity costs of not being able to graze areas set aside specifically for the conservation of sensitive species. These costs are explored and compared with existing institutional costs of conservation, and with potential opportunities growing in world markets. A conservation management network on pastoral lands covering an area of 60,000 kms2 might cost $35-60K per year in foregone opportunity costs. This amount is not substantially different to existing inputs through NHT/Landcare processes, and a lot less than costs of managing a similar area in the reserve estate. Apart from costs, benefits of this approach include a proactive conservation image for the pastoral industry, opportunities for "green" product marketing, and security of conservation objectives through formalised voluntary agreements. Social and economic impediments to this approach are also outlined.