Saltwater Lagoon is a coastal estuary located within Saltwater National Park, just south of Old Bar on the New South Wales coast. It is part of the Khappinghat Creek system, with the estuary connecting to and extending into the lagoon. The primary and clearly identified access point for paddlers is the Saltwater picnic area, which provides a launch site. The lagoon is warm and shallow, nestled against the picnic reserve, and is considered family-friendly for swimming. The paddling route extends for several kilometres upstream from this access point into the lagoon. The surrounding area features the adjacent Saltwater Beach and Wallabi Point Beach, which are separated by Saltwater Point and are top surf spots. This indicates that the ocean entrance to the estuary, near the ocean boat launch mentioned for fishers, likely experiences a surf zone, making it a consideration for paddlers entering or exiting from the open coast. The lagoon is situated within a national park, suggesting a natural setting. The overall character is that of a protected, inland waterway suitable for casual paddling and swimming, contrasted with the nearby ocean beaches which are exposed to surf.