Chtonobdella limbata is found along the east coast of Australia, especially in the state of New South Wales.

The leeches are adapted to withstand drought-like conditions for several months, by anhydrobiosis: they burrow into the ground and enter an inanimate state that resists dehydration.

Adolph Eduard Grube published about the species somewhat ambiguously under the name Hirudo limbata but with "the suggestion of Chtonobdella as a new genus".

[3] All members of the genus Chtonobdella have two jaws,[3] which act like cutting saws against their victim's skin, opening a wound.

[9] In 1944, John Percy Moore, working from a single "poorly preserved" specimen from Dorrigo, New South Wales, and held in the British Museum, provided a detailed description of the species' morphology.

[8][2] Annulation was formerly widely used to identify species, but is used less today as the apparent number of annuli can vary.

[11] Leeches are often thought of as aquatic creatures,[12][13] but Chtonobdella limbata, like all members of its genus, is terrestrial,[3] and a common species of subtropical rainforest habitat.

[6]: 295 In dry times, the leeches bury themselves into the soil, and can enter an inanimate state that resists dehydration, in which they can survive for months given no water in their environment.

[6]: 295  In 1968, Laurence R. Richardson coined the term to describe the leech's behaviour, and he defined it as "a category of cryptobiosis based on environmental stress due solely to the lack of water".

The jar contained moss, damp soil, a small fern, and some leaves – but no further water or moisture was ever provided.

The leech made a small burrow in the soil and would emerge in the late morning or afternoon and move around the jar for some time.

In the state of Victoria, records are fewer and restricted to the vicinity of the Strzelecki Ranges and western Gippsland.