Recovering from natural hazards often involves the reconstruction of both private and public assets. The need for this reconstruction to happen quickly is seen as a positive sign that affected communities are recovering. However, decisions involving reconstruction are usually made under considerably tight timeframes and can have adverse effects on both the long and short-term broader social and economic recovery of communities. This aspect of the recovery process has been coined by Olshansky et al (2012) as ‘time compression’. Improving our understanding of how recovery occurs under time compression is critical as climate change is expected to increase the frequency and intensity of extreme weather events affecting Australia. This paper aims to contribute to this understanding by focusing on the case of the Cardwell community which was severely affected by tropical cyclone Yasi in 2011. The paper draws on empirical data collected through interviews and workshops involving members of the Cardwell community between 2011 and 2013. In particular, the paper reports on the experiences of community members related to the impact the reconstruction process is having on their broader social and economic recovery. This includes the analysis of current institutional arrangements related to disaster recovery at the national level through available financial and non-financial support and recovery governance. Lessons learnt from Cardwell are then discussed to inform future climate change adaptation initiatives related to potential postdisaster recovery processes. Key words: natural hazards, planning, emergency management, disaster, Australia