The knowledge of the ecology and distribution of ostracods from inland waters in Australia is reviewed. The large diversity of the athalassic saline fauna is discussed in detail and species diversity in different areas is analysed; salinity tolerance of the halobiont species is also presented. In addition discussion deals with hatching, permanent versus ephemeral water fauna, mode of locomotion, large size of some species, variation in size and ornamentation of shell. A brief characterization is attempted of the ostracods and the type of habitats in which they live. Finally, the distribution, species diversity in different areas and the endemicity of the fauna are outlined and a comparison of this fauna is made with that of other parts of the world.