The complexity of relationships between social change and natural resource management has generated interest in the identification of indicators that might provide more streamlined means for monitoring and planning. In the case of Australia’s National Land and Water Resources Audit, interest has focused on the capacity of resource managers to implement more sustainable resource-use practices. This paper reports on an attempt to develop indicators of ‘capacity for change’ that are statistically reliable and both meaningful and useful to resource managers at a variety of scales. It will be argued, however, that social, spatial and temporal variability in change processes means that no discrete list of social indicators can achieve this task. At the same time that rigorous testing is needed to challenge common-sense assumptions about who is capable of change and where to target capacity-building programmes, data collection and interpretation must be embedded in processes of ongoing negotiation and adaptation among all those involved in, or affected by, resource management.