The estuarine reach of the Barwon River contains a system of wetlands and lakes including Lake Connewarre, Reedy Lake, Hospital Swamps, Salt Swamp and Murtnaghurt Lagoon. Environmental water can be actively managed at Reedy Lake and Hospital Swamps using regulating structures at the wetlands.
Unlike many other systems, the environmental entitlement does not provide access to water held in storage. Instead, it allows water to be diverted via regulators from the Barwon River into Reedy Lake and Hospital Swamps when river levels are above 0.7 m AHD (Australian Height Datum). High water levels in the Barwon River can also result in natural inundation of the wetlands.