After India was dismissed for 294 in its second innings, the home side was set 413 runs to win, and should it succeed, it will post a world record 17th consecutive victory.
At stumps on day three, having lost both openers, Australia was 2/65 with Ricky Ponting (24) and Mike Hussey (5) at the crease.
Heading into day three, victory still lies a further 348 runs down the road, and India is the warm favourite to win its first match of the series.
Should Australia win, only the West Indies’ 7/418 in the last innings against Australia in Antigua five years ago will stand ahead of this effort.
For Australia to keep its streak alive, it will need to re-write its own record book.
In its 131-year history in Test cricket, Australia’s highest successful fourth innings chase is 3/404, posted by the Don Bradman-led Invincibles at Leeds in 1948.
Closer to home, Australia’s best successful fourth innings chase on home soil was the 6/369 it ran down against Pakistan in Hobart in November, 1999.
On both those occasions, the victories were built around one large partnership.
In 1948, Bradman and Lindsay Hassett put on 301 for the second wicket.
In 1999, Adam Gilchrist and Justin Langer shared a 238-run stand for the sixth wicket.
Australia will need something similar on day four.
The problem is, partnerships of significance have been hard to come by in the match so far.
Of the 32 partnerships to date, only two have bettered 100, with the best the 139 shared by Sachin Tendulkar and Rahul Dravid in India’s first innings.
The pitch is still playing well and once the new ball, which is 14 overs old, loses some of its lustre, batting may become a little easier.
Australia chose to come into the game without a specialist spinner, while India has in its ranks one of the best.
The hard, bouncy WACA pitch may well be right up Anil Kumble’s alley, and he could well determine the outcome of the match.
Day three saw the biggest crowd of the game (17,141), and with the prospect of another fine day tomorrow, the ground should be well populated once again.