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Abstract Urban and peri-urban agriculture can offer multifunctional benefits to people and the planet including job creation, enhanced community health, increased resilience, and environmental advantages. Promoting and strengthening urban agriculture is a key recommendation in the Milan Urban Food Policy Pact; however, commercial urban and peri-urban farms in high income countries often struggle to maintain viability, limiting the potential of the sector. Case studies of specific regions are needed to understand the experience of farmers and identify challenges and opportunities to strengthen the sector. This research provides a case study of small-scale commercial farms in the Illawarra-Shoalhaven region of Australia. A situational analysis was conducted incorporating a desktop review (n=49), online survey (n=20) and semi-structured interviews (n=14). Descriptive statistics and inductive thematic analyses were used to analyse data, and Upstream-Midstream-Downstream methodology was used to integrate findings. A network of small-scale urban/peri-urban farms was identified, collectively growing a wide range of produce and distributing it locally. Key themes in the data indicated both challenges and opportunities: urbanisation and access to land, farmer motivations and resilience, human networks, environmental threats, education and training, tight margins, and regulation and red tape. Urban farmers in the Illawarra-Shoalhaven build organisational viability and resilience by connecting with their local community. However, they face numerous challenges that originate upstream, many of which are out of their control, such as climate change, economic downturns, urbanisation, regulatory constraints and competition with the large-scale industrial food system. To overcome these issues, it is likely that ‘top down’ regulatory and policy shifts will be required. Understanding the source and the impact of the forces acting on urban/peri-urban agriculture is the first step in identifying opportunities to support local farmers and strengthen the sector, including policy levers that may be applicable to similar settings in other high-income country contexts.