Nearshore regions act as an interface between the terrestrial environment and deeper waters. As such, they play important roles in the dispersal of fluvial sediment and the transport of sand to and from the shoreline. This study focused on the nearshore of Poverty Bay, New Zealand, and the processes controlling the dispersal of sediment from the main source, the Waipaoa River. Hydrodynamics and sediment-transport in water shallower than 15 m were observed from April through mid-September 2006. This deployment afforded observations during 3–4 periods of elevated river discharge and 5 dry storms. Similar wind, river discharge, wave, current, and turbidity patterns were characterized during three of the wet storms. At the beginning of each event, winds blew shoreward, increasing wave heights to 2–3 m within Poverty Bay. As the cyclonic storms moved through the system the winds reversed direction and became seaward, reducing the local wave height and orbital velocity while river discharge remained elevated. At these times, high river discharge and relatively small waves enabled fluvially derived suspended sediment to deposit in shallow water. Altimetry measurements indicated that at least 7 cm was deposited at a 15 m deep site during a single discharge event. Turbidity and seabed observations showed this deposition to be removed, however, as large swell waves from the Southern Ocean triggered resuspension of the material within three weeks of deposition. Consequently, two periods of dispersal were associated with each discharge pulse, one coinciding with fluvial delivery, and a second driven by wave resuspension a few weeks later. These observations of nearfield sediment deposition contradict current hypotheses of very limited sediment deposition in shallow water offshore of small mountainous rivers when floods and high-energy, large wave and fast current, oceanic conditions coincide. Consistently shoreward near-bed currents, observed along the 10 m isobath of Poverty Bay, were attributed to a combination of estuarine circulation, Stokes drift, and wind driven upwelling. Velocities measured at the 15 m isobath, however, were directed more alongshore and diverged from those at the 10 m isobath. The divergence in the currents observed at the 10 and 15 m locations seemed to facilitate segregation of coarse and fine sediment, with sand transported near-bed toward the beach, while suspended silts and clays were exported to deeper water.