The Liberals gained several seats, but Labor held power with of the support of the two "independent Labor" members.
It was only the second time that a Labor government in South Australia had been re-elected for a third term, however it would be the first eleven-year-incumbent Labor government.
Before the election, the Liberal Party made allegations of a Labor 'gerrymander', due to the perceived unfair state of the electoral boundaries. While Labor had not instituted any type of imbalanced electoral legislation, it had nonetheless not issued a redistribution since 1983. The electoral districts, with the correct 10 percent tolerances at the time, had not been updated, and due to population shifts, had changed beyond the tolerance allowed. Legislation made redistributions mandatory by the Electoral Commission of South Australia after each election, and included a 'fairness clause' where the commission should redraw boundaries with the objective that the party which receives over 50 percent of the statewide two-party vote at the forthcoming election should win the two-party vote in a majority of seats. One element of the Playmander remains to this day − the change from multi-member to single-member seats.
Olsen was replaced as Liberal leader by Dale Baker in 1990. He did not contest an election as leader, resigning the leadership to Dean Brown in 1992.
In the South Australian Legislative Council, the sole balance of power was held unbroken by the Australian Democrats from their inception in mid-1970s, until the late 1990s. Though the Democrats would exceed 16 percent of the vote at the 1997 election, during the following term the Democrats would lose the sole balance of power for the first time, sharing the balance of power with independent members, slowly losing numbers and influence, until they were eventually without parliamentary representation as of the 2010 election.