This exploratory study looks at evidence of merger between /el/ and /æl/ in Australian English, and the possible relationship between production and perception that might be involved in such a process. This merger appears to occur primarily in Victoria, although its regional distribution within that state still requires investigation. The phenomenon appears to be motivated by the interaction of three different phonetic processes: increasing lateral velarization; increasing vowel lowering; and misperception/misparsing of the phonetic signal. We focus here on the behaviour of a sample of native speakers from Warrnambool, a regional township in south-west Victoria. Given evidence that some speakers merge the vowels in /el/ and /æl/ while others do not, our participants are categorized as maintainers (those who keep /el/–/æl/ distinct) and combiners (those who merge /el/–/æl/), and we compare how the groups process /el/–/æl/ in perception. Overall results point to an association, according to category, between listeners' own production and perception of /el/–/æl/ in an identification task, although individual variability is also evident and needs to be understood.