The effectiveness of various adaptation options is dependent on the capacity to plan, design and implement them. Understanding the determinants of adaptive capacity is, therefore, crucial for effective responses to climate change. This paper offers an assessment of adaptive capacity across a range of sectors in South East Queensland, Australia. The paper has four parts, including (1) an overview of adaptive capacity, in particular as a learning process; (2) a description of the various methods used to determine adaptive capacity; (3) a synthesis of the determinants of adaptive capacity; and (4) the identification of mechanisms to build adaptive capacity in the region. We conclude that the major issue impacting adaptive capacity is not the availability of physical resources but the dominant social, political and institutional culture of the region.