Bundanoon Creek is located in the Shoalhaven region of New South Wales, approximately two hours' drive from Sydney. It flows into Lake Yarrunga (the reservoir behind Tallowa Dam) from the north, joining the lake roughly 2.5 kilometres upstream from the dam. The creek is accessible by paddling up from Lake Yarrunga, making it a natural extension of any trip on that lake.

From the lake, the creek can be paddled for approximately 4 kilometres into a gorge that progressively deepens and becomes more enclosed as you travel upstream. The gorge character intensifies with distance, with high rock walls contributing to a dramatic, enclosed atmosphere. The experience is often described in comparison to the neighbouring Shoalhaven Gorge — similarly striking but considerably less visited. Paddlers launching from Tallowa Dam should head right rather than left to access Bundanoon Creek, as opposed to the more commonly paddled Shoalhaven Gorge route.

The creek is suitable for flat water paddling under normal conditions. However, after heavy rain the waterway can be affected by flooding, and the rivers feeding into Lake Yarrunga become whitewater and should be avoided unless paddlers have appropriate equipment, training, and group support. The Shoalhaven region's rivers can carry significant flow for extended periods following rainfall due to the large catchment area, which may also affect access to campsites in the area.

The NSW Waterways Guide references small campsites along Bundanoon Creek, which may be suitable for camping or lunch stops, though paddlers should verify current conditions and access before planning an overnight trip. Lake Yarrunga itself is regarded as one of the premier flat water paddling destinations in Australia, and Bundanoon Creek offers a quieter, more exploratory alternative to the main lake routes. The combination of the gorge scenery, relative solitude, and accessible flat water makes it a worthwhile destination for paddlers already visiting the Kangaroo Valley area.