The Coal River rises on the hills east of Tunnack, at an elevation of , and winds its way south through undulating terrain before being impounded at the
Craigbourne Dam. From there the regulated river flows south through the Coal River Valley, accepting unregulated inflows from its two main
tributaries, the Native Hut and White Kangaroo rivulets, before flowing through Richmond and into Pitt Water at
Penna, where the ground is marshy in places, at an elevation of . The Coal River catchment is one of the driest catchments in Tasmania, with annual rainfall averaging from across the catchment. Since 1992, irrigators have drawn water from the Coal River to feed the Daisy Banks Dam, part of the South East Irrigation Scheme, that is delivered throughout the district by approximately of pipelines, for use in the Coal River Valley. == Nature reserve ==