OIL and water aren't supposed to mix, but they did last night at the Big Pineapple.

Midnight Oil's sold-out show at the fields opposite the Coast landmark turned out to be a rain-soaked one, but that didn't deter thousands of fans.

The grassy slope facing the stage was a sea of ponchos, rain jackets and even a few sombreros as concert-goers did their best to stay dry while rocking out to one of Australia's greatest rock bands.

The rain started mid-way through Jebediah's opening set, and only got heavier as The Living End took to the stage.

Front man Chris Cheney told the crowd he was happy to see proof Queenslanders are 'tough as nails' and pointed out the much-needed rain would make the show memorable '20 years from now'.

Before finishing his set, Cheney reminded everyone they were about to see one of, if not the best Australian rock band - and he wasn't wrong.

Opening with Redneck Wonderland, Lucky Country and Sleep, Midnight Oil is - excuse the pun - a well-oiled machine after spending much of this year on the road for The Great Circle Tour, the band's first world tour in 20 years.

Front man Peter Garrett spoke fondly of the Coast, saying "under Cooroy Mountain I could be happy" before launching into the Queensland-inspired song Dreamland.

As the rain came down even harder, Garrett vowed to continue the show even if it had to be an acoustic set at the pub down the road.

"Thank you for standing in the rain," he said.

"The more it rains the more we'll stay to play our set… we shall play on."

Drummer Rob Hirst emerged from behind the drum kit for Short Memory and US Forces.

Garrett, a former environment minister, then spoke briefly of Adani's controversial Carmichael coal mine and the band's coral not coal campaign.

"This world is too precious to be destroyed in that way," he said.

"Sometimes you've got to stick your neck out."

The biggest songs were saved for the encore, and the most resilient fans were rewarded with the trio of King of the Mountain, Beds Are Burning and Power and the Passion.