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Dalby and the surrounding towns are located in the area known as the [[Darling Downs]]. Industry is basically rural, with pigs, cattle and sheep the predominant livestock, and crops such as [[wheat]], [[cotton]] and [[sorghum]] providing an agricultural component. Two cotton gins are situated in the town. The local area is also developing an energy based economy with a large coal fired power station and a number of coal mines and natural gas bores being established just to the west of Dalby.
Approximately 50km west of Dalby is the Kogan Creek Power Project. This $1.2 billion project is a 750 megawatt coal fired power station, with adjacent coal mine being developed at Kogan. The small town of Kogan is roughly equidistant between [[Chinchilla, Queensland|Chinchilla]], [[Dalby, Queensland|Dalby]], and [[Tara, Australia|Tara]].
The Kogan Creek Power Station will be commissioned in September 2007, delivering electricity to the national grid.
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