In 1982 it was designated a wetland of international importance under the Ramsar Convention.

The 56-hectare (140-acre) Ramsar site encompasses Little Waterhouse Lake, its adjacent floodplain to the south, with the marshland extending 400 metres (1,300 ft) downstream of the lake.

The 10-hectare (25-acre) lake lies near Bass Strait behind coastal dunes and receives its water from local catchment runoff.

It has high floral diversity, with over 40 species of aquatic and semi-aquatic plants.

The site also supports the threatened growling grass frog and Dwarf Galaxias.