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The koala's habitat is decreasing dramatically, and with it, the population of the koala itself is also decreasing. Koala habitats are decreasing primarily because of increased urbanisation and housing developments. In the past, farming and agriculture destroyed many areas of koala habitation, but in recent times it is urban sprawl which creates the greatest threat. Also, introduced predators have encroached upon the koala's habitat. Foxes and dogs are a major threat to koalas in their native habitat.

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