This paper presents a participatory approach being used to monitor the changes in economic and social indicators within the Water Sharing Plan areas in NSW. The approach entails close cooperation and input from the stakeholders comprising engagement and scoping; profiling, literature review and media scanning; indicators selection; data collection; and analysis and reporting over time. The monitoring data on the key economic and social indicators will be used for review of the Water Sharing Plans as well as further refinement and development of water policies in NSW. This framework provides the basis for developing similar monitoring programs.