In the last few years many rural areas in Australia have hit hard times. But this country town seems to be thriving.


GRAHAM BADGER: At first glance, Pinnaroo looks like a typical sleepy country town.

But this farming community, 240km east of Adelaide in the Mallee, is very much alive and jumping.

Many of the fans at last weekend's Spud Fest concert in Pinnaroo are too young to remember what life was like without potatoes -- spuds have only been grown in the area for about 10 years.

However, they're now enjoying the benefits that the potato and its production dollars have brought to their community.

STEVE PAGE: 10 years ago, the region certainly was a dry land farming region and possibly starting to struggle and go through decline, but since the vegetable guys, and in particular the potato industry, shifted through, it's exactly the opposite.

GRAHAM BADGER: The Mallee is best known for its wool, wheat and barley, but the potato industry is now one of the region's biggest employers, with spuds being grown on several huge farms between Pinnaroo and Lameroo.

Every house in Pinnaroo is occupied, the birth rate is up and the local school is full.

GRAHAM BADGER: Despite the economic benefits, some conservationists and locals have reservations about such a water intensive industry.

JEFF NICHOLLS: The long-term sustainability of the water, I guess, is a concern, but we have to have faith in the authorities that are monitoring that that they are keeping an eye on it, and, of course, it has to be kept sustainable for the potato growers too, so it's in their interests.

So I'm quite sure that if everybody works together, it'll have a good outcome.

ANTHONY MCBRIDE: We don't waste water.

We only water when we need to water.

That's monitored very regularly.

STEVE PAGE: There's a lot of data prepared by the appropriate department that monitors the aquifer itself in relation to draw downs and salinity, and they're very, very happy with how the aquifer's drawing, and saying that we'll only use potentially 10 per cent of that resource over the next 300 years.

So it still is being mined, but very, very slowly, and it's being managed very well with environmental considerations in mind.

GRAHAM BADGER: Just what affect the spud has had on Pinnaroo can be gauged by the turnout at the Spud Fest, with visitors flooding into town for the festivities, including the much-publicised mashed potato wrestling competition.

But it isn't only potatoes that have brought new life to Pinnaroo; the region also has flourishing local grape, olive, pistachio, onion and carrot industries that are also pumping much-needed cash into the local economy.