Australian data were used here in a life cycle assessment of three types of nappies (disposable, home-washed re-usable, and commercially-washed reusable). Four environmental indicators were used: water resource depletion, non-renewable energy depletion, solid waste and land area for resource production. For the first time, the effect of forestry on runoff was included in water resource depletion. A range of scenarios were considered for each nappy, to account for variability in usage rates and washing practices. The results enable parents to assess the impact of each nappy system based on their own conditions. Comparing variation within and between nappy systems also allowed a fairer assessment of the nappy systems. Home-washed reusable nappies washed in cold water in a front-loading washing machine and line-dried were found to use less energy and land resources, comparable water resources, and produce similar or lower quantities of solid waste, compared to the other nappy systems. Methods to reduce the impact of each nappy system were identified. The major difference between the nappy systems is that the user has much more control over the environmental impact of home-washed reusables. The main role by which consumers can reduce the impact of commercially-washed and disposable nappies is to use them less frequently. The study highlights the importance of including variability explicitly in the inventory analysis. The results also suggest that accounting for reduced forestry runoff in water resource depletion may impact the outcome of studies involving softwood-sourced products; further work is required to better quantify the effect of forestry on water resources.