The Australian men's water polo team, the Aussie Sharks, have returned to form in brilliant fashion after defeating Kazakhstan 7-4 in their second game of the London Olympics.

The Sharks led from start to finish as they brushed aside their nerves to score their first points of London 2012.

Four-time Olympian Gavin Woods was outstanding in the first half, turning back the clock to bamboozle Kazakhstan in both attack and defence. He was dominant at centre forward earning numerous kick outs and capitalising in front of goal, before deputising at centre back.

Rhys Howden was also effective in that period netting his first of two goals, to give Australia a 4-1 lead at half-time.

A professional foul against Thomas Whalan early in third term led to a quick Kazak reply, before Kazakhstan netted another just seconds later to reduce the margin to one.

However a two-metre strike by Aidan Roach from the left pocket and a great flick goal by Tim Cleland restored the balance.

Kazakhstan kept fighting in the final term, but brilliant centre back play by 20-year old Aaron Younger and Howden's second was enough to seal the win for the Sharks.

Head coach John Fox was pleased with the result and said he saw enough in that performance to suggest the Sharks could go all the way.

"Defensively we were much better," Fox said after the game.

"We had a little lapse at the start of the third term where we allowed two easy goals, but the rest of the game was very encouraging."

"We're working our way into it which is what you hope to do, and we're very happy with where we're at."

Tim Cleland agreed with his coach and conceded their first up loss may have been the result needed to kick them into gear.

"While our game against Italy was disappointing there were still a lot of positives and I suppose today was a continuation of that," he said.

"We just need to keep ticking the boxing and hopeful we can continue our charge to the quarters."

The Sharks now sit fourth in Group A with a win and a loss to their name. Their next match is against Spain at 7pm on Thursday AEST.

Aussie Sharks

Joel Dennerley, Richie Campbell, Tim Cleland, Johnno Cotterill, Aaron Younger, Jamie Beadsworth, Aidan Roach, Sam McGregor (c), Thomas Whalan, Gavin Woods, Rhys Howden, Billy Miller, James Clark

Result: Australia 7 bt Kazakhstan 4

Qtrs: 2-1, 2-0, 2-2, 1-1

X man for: 3 from 9

X man against: Kazakhstan scored 3 from 6

AUS Scorers: Rhys Howden 2, Sam McGregor, Jamie Beadsworth, Gavin Woods, Aidan Roach, Tim Cleland

Aussie Sharks' centre back Tim Cleland during Australia's 10-8 loss to Italy (Grant Treeby Images)

Game 1: Sharks lose opener to Italy

A nervous start and poor execution in extra-man at both ends of the pool have cost the Aussie Sharks in their opening game of the London Olympics going down to Italy 8-5 at the Olympic Water Polo Arena in London.

The world champion Italians were dominant in extra-man netting an incredible six from seven, including five from six in the opening half, to put a strangle hold on the Australians.

The Italians unleashed an array of extra-man moves early to dismantle the Sharks defence and lead 3-0 at quarter time.

Both Gavin Woods and Jamie Beadsworth were also able to create numerous kick outs at centre forward, but the Sharks' first quarter cohesion was lacking.

The Sharks responded in the second and third terms to reduce the margin to two with Western Australian Tim Cleland netting Australia's first goal for the Games and goalkeeper Joel Dennerley proving a wall in defence.

Australia had a chance to pull within one in the last period with Aidan Roach and Johnno Cotterill netting key goals, but ex-Australian and 2004 and 2008 Olympian Pietro Figlioli proved a pest against his old nation.

The Sharks had their chances to test the Italians but a superb game by Italian keeper Stefano Tempesti combined with their 20 per cent extra-man conversion rate and poor first quarter cost them dearly.

Coach John Fox was disappointed with the result and hinted at some early nerves as a possible reason.

"We gave them a three goal start and you can't give world champions three goal leads," Fox said.

"The rest of the game was even and if not we were ahead.

"Their defence is good and their keeper Tempesti is the best in the world and he showed why today.

"Hopefully the nerves are now out of the system."

Fox and the Sharks now have two days to regroup ahead of their second game against Kazakhstan at 23.00pm on Tuesday AEST.

Aussie Sharks

Joel Dennerley, Richie Campbell, Tim Cleland, Johnno Cotterill, Aaron Younger, Jamie Beadsworth, Aidan Roach, Sam McGregor (c), Thomas Whalan, Gavin Woods, Rhys Howden, Billy Miller, James Clark

Result: Australia 5 lost to Italy 8

Qtrs: 0-3, 2-2, 1-0, 2-3

X man for: 1 from 5 and 0 from 1 penalty

X man against: Italy scored 6 from 7

AUS Scorers: Tim Cleland, Richie Campbell, Rhys Howden, Aidan Roach, Johnno Cotterill

Source: Australian Water Polo