The Multifunction Polis (MFP) is jargon for a proposed Japanese-Australian new city, which is currently the subject of a major feasibility study. The joint project is expected to result in a new city in Australia of 50 000-100 000 population, but its location and viability have yet to be determined. The MFP is viewed by both governments as highly significant for future industrial, urban and international development in the Pacific region. This article examines the background to the MFP concept, the issues being considered by the feasibility study, and the motives and perceived benefits for both partners. Some of the possible problems are also outlined, particularly those of social polarisation.