We have examined the trends in stillbirth rates and neonatal mortality rates of infants of 20-31 weeks' gestational born in Victoria during 1986-1993 (n = 6,462), using data from the Victorian Perinatal Data Collection Unit. Seventy four percent of all infants and 83% of all liveborn infants were born in level 3 hospitals. Both stillbirth and neonatal mortality rates were lower for infants of higher gestational ages, and those born in level 3 hospitals. During 1986-1993, annual stillbirth rates remained steady, with mean values of 61.2%, 40.2%, 24.7%, 16.0%, and 11% for infants of gestational ages 20-23, 24-25, 26-27, 28-29, and 30-31 weeks, respectively. The neonatal mortality rates decreased from 76.1 to 38.6%, 42.3 to 17.6%, 12.9 to 6.0%, and 8.4 to 3.7% for liveborn infants of gestational ages 24-25, 26-27, 28-29, and 30-31 weeks, respectively. The time-related falls in neonatal mortality were not due to changes in Caesarean section rates, intubation rates, or the proportions of infants born in, or transferred to, level 3 hospitals. They probably reflect continuing improvements in perinatal care.