The purpose of this study was to review American foulbrood (AFB) disease control policy in NSW and recommend a more effective approach. AFB is the most serious endemic disease affecting Australian beekeeping. There are sound economic reasons for ongoing NSW Government involvement in AFB regulation. Market failure exists in relation to ‘negative externalities’ and the provision of information. Well managed apiaries are infected with AFB from poorly managed hives and it is not possible for an individual beekeeper to know whose hives have AFB or their location. Recommendations were made for a new policy approach and industry funded control model. The work was completed by Michael Clarke.