In spite of their apparent benefits, learning management systems can be regarded as a hindrance to effective online learning. Their design, functionality, complexity, price, and value are beginning to be questioned by some users. As a new generation of Web-based tools and approaches evolves, Web-based learning management systems are becoming better suited to meet the need for dynamic online learning, interaction, collaboration, and networking. The new tools and collaborative approaches these systems provide allow learners to take proactive control of their own learning. In June 2004 a consortium of New Zealand Tertiary Institutions led by the Waikato Institute of Technology secured a one-year Ministry of Education grant to support the "Open Source Courseware Initiative New Zealand" (OSCINZ). The OSCINZ project focused on the development and implementation of "Moodle" (Modular Object-Oriented Dynamic Learning Environment) to create a uniquely New Zealand learning management system, based on quality open source code developed and tested by leading educational providers. This paper describes the response of faculty in three of the project's partner tertiary institutions to the implementation of Moodle in their institutions.