A 3050m long section of a 1.65m internal diameter tunnel is presently under construction in the Brisbane area by means of the pipe-jacking method. The soils along the alignment had been deposited in a deltaic/estaurine environment and rapid changes in soil type occur. The tunnel passes beneath several extensive bodies of surface water. Groundwater problems have been experienced with tunnelling through alluvial sands and gravels. Details of the ground conditions, the pipe-jacking method used and tunnelling experience are discussed in this Paper.