‘Sustainability’ provides the dominant frame for environmental policy debate, even though there is considerable debate to as to what sustainability is, why is it needed, and how can it be progressed. From 1999 through to 2010, Victoria was governed by Australian Labor Party (ALP) led governments that, at times, actively pursued the goal of sustainable development. This culminated in the stated ambition for Victoria to be ‘world leaders in environmental sustainability debate and practice’. This paper explores the way in which sustainability was enacted by Victorian Labor while in government. The evidence indicates that the potential of Victorian Labor's vision was never realized, and that it failed to significantly reform the neoliberal policy settings it inherited.