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People can and do live in Australia's outback. I live there, and last time I felt my pulse I had one so must still be alive. Not all that many people live in the outback though, mainly miners and pastoral workers and their families. Many areas lack water and are fiercely hot in summer. Farmers (or rather, pastoralists) have lived in the outback for nearly two centuries although numbers have fallen steadily since WWII as small farms have been joined into larger spreads.

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Q: Why humans cannot live in outbacks of Australia?
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