Lake Illawarra is located between the Illawarra escarpment and the Pacific Ocean on the NSW South Coast some 90 km south of Sydney. Water flowing into it is both fresh (from the escarpment) and salty (from ocean tides).

The Lake Illawarra Authority Act 1987 was proclaimed on February 11, 1988.

The NSW Government established the Lake Illawarra Authority (LIA) with the aim of transforming the degraded waters and foreshores of Lake Illawarra into an attractive recreational and tourist resource.

The restoration of ecological values was identified as an important objective. The LIA was charged with the task of repairing the environmental damage that had accumulated over decades, both within the lake itself and along lake foreshores.

The degradation of the lake was primarily due to lake catchment areas since World War II. Since the LIA was first established, public expectations for a restored lake environment have intensified.

There is a greater awareness among local communities as to the value of the lake. Children are now more aware of the fragility of the ecological environment, and the threats to the lake arising from development and neglect.

However population size in the catchment of the lake continues to grow, and unless erosion and pollution controls are rigidly enforced West Dapto, Kembla Grange and parts of Albion Park and Shellharbour will seriously impact upon the lake.