It contains one of the southernmost mangrove forests in the world, a dolphin sanctuary, seagrass meadows and is an important fish and shellfish breeding ground.

[1] Some stormwater is now being filtered through wetlands before discharge and the inlet has been declared a reserve for the preservation of dolphins, fish, crabs and aquatic plants.

by the adjacent former salt crystallization pans (closed in 2014),[2] hot wastewater discharge from Torrens Island power station, heavy metal contamination from stormwater and treated sewage, and disturbances from boat traffic.

There is an artificial channel, running along the side of a breakwater, from a boat ramp at St Kilda near the inlet's northern end.

[citation needed] The coast side of the mangroves are bounded by extensive salt evaporation ponds leased for industrial usage by the South Australian Government.

[7] Many bird species use the inlet including cormorants, terns, ducks, swans, pelicans, egrets and herons, as well as silver gulls and white-bellied sea eagles.