The Bundara River rises east of Mount Hotham and Mount Loch in the Australian Alps in the Alpine National Park[3] at an elevation of 1,420 m (4,659 ft), and flows into the Big River about 2 kilometres (1.2 mi) north of Anglers Rest.

About 2 kilometres (1.2 mi) north of Anglers Rest the Omeo Highway crosses over the river, and about 100 metres (330 ft) north of this crossing it reaches its confluence into the Big River at an elevation of 650 m (2,133 ft).

Despite some land clearing and livestock damage to river banks, the aquatic habitat is generally very good.

[4] In early 2003, large areas of forest around the Bundara River and its catchments were severely impacted by the massive Eastern Victorian alpine bushfires.

These fires burnt through approximately 13,000 square kilometres (5,000 sq mi) of the area's bushland for close to two months.