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It can be done in QGIS. It's called digitising when you're drawing over a scanned map (image, or raster in GIS terminology). Check this handy, simple yet accurate tutorial Digitizing Map Data and come back if you run into more questions.


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I found a free DEM extractor based out of Geoscience Australia and used the DEM to create contours via the contour tool in ArcGIS for Desktop. http://www.ga.gov.au/elvis/



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