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Parliamentary report in Australia shows 700,000 coastal homes may be at risk if global warming continues and sea levels rise. Local conflicts are brewing over residents who want to build seawalls and town planners who want to move houses away from Australia's beaches.

A two-mile arc of golden sand in Sydney's northern suburbs, Collaroy Beach is a beautiful spot. "I wouldn't live anywhere else," declares Roger Wright, watching surfers bob in the waves on a recent afternoon.

But Collaroy is not always so idyllic. During severe storms, the beach is lashed by mountainous seas that strip away tons of sand and lap at the gardens of beachside properties. Fences have been …