The Australian continent is notable for the faunal radiations which have occurred in its saline inland waters. The endemic brine shrimp genus Parartemia inhabits many of these habitats. The complex pattern of morphological variation in parartemiids has impeded the establishment of a sound scheme of species relationships. The present study provides an explicit hypothesis of relationships for the genus based on nucleotide sequence data from a segment of mitochondrial DNA coding for the large subunit rRNA gene. Phylogenetic analyses indicated that the eight known species are genetically distinct, and revealed the existence of at least two new species. The molecular data support certain morphology-based relationships among species, but are inconsistent with other hypotheses. There is evidence that most members of the genus arose in a short interval, followed by remarkable genetic divergence. Comparisons of levels of mt DNA sequence divergence between lineages from saline inland waters and freshwaters using representative crustacean groups from Australia that included parartemiids indicated profound differences in rates of evolution, with halophiles exhibiting greater rates of change than their counterparts from freshwaters.