The patented McArthur-Forrest gold extraction process played a significant role in facilitating gold recovery in Western Australia after 1897. The patent-holders failed, however, both to obtain income commensurate with their efforts and to extend their patent rights in Western Australia. This paper revises existing historical accounts of the cyanide royalties dispute in Western Australia in the light of new sources and focuses on industry-state relations and the respective strategic roles that industry and the state played in the resolution of the dispute. The paper also provides a new conclusion to the dispute’s resolution in Western Australia.