Further agricultural development in the Daly River catchment is planned. As an input into this planning this report provides the best current understanding of the erosion and sediment transport processes and rates in the catchment, and their drivers. The main sources of sediment and the redistribution of the sediment within the catchment are quantified. The techniques used are: remote sensing of channel change; modelling of erosion, sediment transport in the main river channel, and storage of sediment on floodplains; sediment source tracing using fallout radionuclides; measured rates of riverbank erosion derived from remote sensing and ground measurements; and hydrologic analysis of river flows. The conclusions are that the river does not appear to have filled up with sediment over the last few decades, and that most of the river sediment is coming from river channel widening. This widening is a response to increased river flows and higher groundwater levels. About one quarter of the river sediment is the result of gullying of riverbanks, most of which appears to be the result of grazing pressure by cattle and feral animals. Protection of the river banks where possible is a priority for management, although this may be compromised by continuing widening of the channels in response to increased flows.