It is one of a series of terminal lakes on the Wimmera River, which form the largest land-locked drainage system in Victoria.

Lake Albacutya is designated as a wetland of international importance under the Ramsar Convention.

[4] On the occasions that there is an overflow from Lake Hindmarsh to the south, water enters Outlet Creek, (Wergaia: Krumelak[3]) which then feeds Lake Albacutya.

When full, Lake Albacutya covers 5,500 ha (14,000 acres), is 8 m (26 ft) deep, and holds around 230 gigalitres (8.1×109 cubic feet) of water.

The lake generally fills and empties on a 20-year cycle, the longest dry period on record being 27 years.