The need for the hydraulic transportation of coal in the New South Wales coal industry, both from the coal face to the surface and from the coal mine to the consumer or the port for export, is explained. Details of research projects currently in progress and involving the hydraulic transportation of New South Wales coals are given together with information on the hydraulic transportation of coal in the United States of America. The potential of hydraulic transportation as a viable alternative to the proposed expansion and upgrading of the New South Wales railway system to meet the projected New South Wales coal production to the year 2000 is described.