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Abstract A blood lead study of 1‐4‐year‐old children attending child care centres in eastern Sydney was conducted from November 1992 until May 1993 to determine the distribution of blood lead levels (PbBs). A total of 191 children were tested during the survey, constituting a participation rate of 67%. The geometric mean PbB was 0.34 μmol/L (7.2 μg/dL); 13.6% of children had PbBs equal to or greater than the National Health and Medical Research Council (NHMRC) upper goal of 0.48 μmol/L (10 μg/dL). Traffic flow at home, the presence of pets at home and thumb‐sucking in females were all highly associated with blood lead. In particular, the association between PbB and traffic volume indicated a positive dose‐response type relationship. Removal of paint from a pre‐1960s house and having a smoker in the house had a non‐significant effect on variation in blood lead. These results suggest that recent government and industry actions to reduce lead in petrol should have a beneficial effect in lowering PbBs in children. Widespread public education on sources of lead around the home and on appropriate control measures to minimise exposure is warranted.