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Climate change is predicted to lead to warmer temperatures and more intense storms within the century in central and northern Australia. The ensuing impacts are anticipated to present immense challenges for remote communities, in terms of maintaining housing comfort, family health and wellbeing, engagement in education and employment, and community services and businesses. About 50 % of the Australian landmass is considered remote and it is home to a highly dispersed population of about half a million people (with 30 % being Indigenous people). Much of the population in remote Australia is considered highly vulnerable to the effects of climate change as they are highly exposed and sensitive to the impacts, with many having a low adaptive capacity. The lives of Aboriginal Australians living in remote communities are strongly influenced and governed by traditional customs, knowledge and practices. Even when living in large towns, people who are strongly connected to their country are able to blend knowledge from traditional and modern sources to adapt to the current climate. This article explores the extent of adaptive capacity of people to climate change in a small remote community and large service town in the Northern Territory of Australia and provides insights about their capacities and vulnerabilities. Results indicate that the social and cultural capital are of greater importance than commonly assessed and provide scope to enhance effective community-based climate adaptation.