Given the situational analysis, the objectives and logic step in water resource planning is where decisions are made on what the plan should achieve and broadly how it should do so. As discussed in chapter 3, we suggest a hierarchy consisting of non-quantified objectives and outputs (outputs being in effect a lower level of objective), with associated quantifiable performance indicators and targets. We define objectives as the desired benefits and associated services that derive from the water resource. We define outputs as the water regime characteristics that are expected to deliver those benefits and associated services, subject to key external assumptions. We define actions as the means that the plan puts in place to achieve those water regime characteristics. Performance indicators and associated targets are used to indicate quantitatively the extent that objectives and outputs are expected to be achieved and thus the level of trade-off between competing objectives adopted in the plan after consideration of different management options. Objectives are the foundation of the water resource planning process, guiding strategy development and achieving early agreement on common ground, or foreshadowing the need for trade-offs. Objectives need to be referred to throughout the process to keep priorities in perspective, and may need to be revised depending on additional information uncovered along the way. In this chapter we look at processes for setting objectives and outputs with their performance indicators. Actions are developed in the next step of planning (chapters 7 and 8). Targets, which indicate the extent that objectives and outputs are to be achieved, are defined once the actions to be adopted are determined, and final monitoring and evaluation mechanisms are set subsequently. We examine these in later chapters.