In dealing with HIV infection and AIDS, the law must balance the public health interests of the community against the potentially conflicting rights of individuals to liberty and privacy. This article reviews public health legislation currently in force in Australian States and Territories, discusses the potential for coercive strategies to be applied to AIDS sufferers and persons who are or who are presumed to be infected with HIV, and considers how to deal with HIVinfected persons who knOWingly or recklessly spead the virus. It is possible that strong measures to control the spread of HIV may be counterproductive because they discourage the cooperation of infected persons and groups at high risk of infection. Although the potential for restrictive practices is great, the law must make, and in Australia has made, some compromises in the interests of the individual and the larger community. (Med‐J Aust 1991; 154: 61–67)