A broad range of information relevant to salinity is reviewed in order to critically evaluate existing and prospective policy responses. The review includes issues of hydrogeology, farmer perceptions and preferences, farm‐level economics of salinity management practices, spill‐over benefits and costs from salinity management, and politics. The technical challenge of preventing salinity is far greater than previously recognised. The farm‐level economics of currently available management practices for salinity prevention are adverse in many situations. Off‐site benefits from on‐farm practices are often small and long delayed. Past national salinity policies have been seriously flawed. While current policy proposals include positive elements, they have not sufficiently escaped from the past.