Interlaken Lakeside Reserve is a significant example of a mid-altitude wetland which supports threatened endemic species, wetland vegetation communities and an unusual phytoplankton assemblage. Endemic species include the nationally endangered golden galaxias (Galaxias auratus) that only occur naturally in Lakes Sorell and Crescent and associated streams and wetlands. The Site is also one of the three known localities in Tasmania for Scirpus montivagus, a sedge, and for Amphibromus neesii, the southern swamp wallaby grass. Human activities include livestock grazing, sport fishing, and duck shooting.

Tasmania