The Lower Donnelly River is within the D’Entrecasteaux National Park, and is regarded as the 11 km section of the River from 'boat landing' to the mouth of the River as it enters the Southern Ocean. The River section is densely vegetated with species such as swamp peppermint, Warren River cedar, swamp
willow, karri hazel and swamp paperbark, sword sedges and rushes are in abundance along the entire length. Fauna on the River include purple swamp hens, pacific black ducks, black swans, wood and shell ducks.

The Donnelly River opens to an estuary flanked on the south by a limestone bluff, and to the north by rehabilitated sand dunes. The estuary is home to many pelicans, oyster pickers, terns and other birds.

The Donnelly River Huts have a tiny footprint on this magnificent environment.

The hut precinct represents an area of limited camping and 'settlement' for a continuous period of almost 100 years with little adverse environmental impact. In fact, evidence shows that substantial environmental improvement has occurred as a result of an ongoing hut owner presence. Hut owners action to re-vegetate bare areas, to reticulate water to encourage development of seedlings,
and management of accumulated plant debris to protect against fire has resulted in extensive re-growth of native vegetation. The progressive introduction of other plants has also led to stabilization of sand dunes adjacent to the river mouth. Local knowledge and resources of hut owners has assisted scientific study and will continue to do so.