Australia has national and state mental health plans that guide service development and promote quality in its public mental health system. Interestingly though, Australia still lacks a well-managed, priority-driven program of research in the mental health sector. This lack is perhaps indicative of the historical relative lack of funding for mental health research compared with other areas of health, at a national level. As a result, approaches to research tend to be ad hoc and reactive to emergent problems. In 2009–2010, a participatory action research study using elements of the consensus oriented Delphi method was implemented in a Queensland regional public mental health service. The aims of the study were to identify and prioritise research questions of importance to the local public mental health service and its members, to compare local priorities with national and state research agendas, and to identify needs relating to research capacity. Data were collected using a modified Delphi technique, three rounds of surveys, field notes and research team reflection. The study reached consensus, with all three cohorts of participants agreed that emotional well-being was the most important research area. The second most important research area was service quality and accountability. The equal third most important research areas were family involvement in the care of their relative and personal (that is, consumer) involvement in their own care.