Feral animals have caused major damage to waterholes in central Australia. These animals are much larger than the native fauna and often occur in large numbers. Due to their size and hooves, they can cause significant erosion to the fragile soils around waterholes. In very dry times feral animals routinely perish in waterholes, further damaging these sites and making their waters unusable for both people and native animals. The recent degradation brought about by feral animals to important water places in arid Australia has led to an urgent need to restore the ecological and cultural values of these sites. While fencing sites is often used to exclude feral animals, it can have mixed success. This study looks at the effect of feral animal exclusion by fencing on terrestrial vertebrate communities and vegetation at two waterholes. While the fencing worked at one of the sites, at the other site feral animals were not effectively excluded in times of drought. Vertebrate communities altered in response to feral animal exclusion. Vegetation cover increased, but both sites are now being invaded by exotic buffel grass Cenchrus ciliaris. The next step of the restoration will need to focus on the control of invasive plants but also maintain the exclusion of feral animals.