Rainbow Beach draws its water from the South East Queensland Catchment area (SEQ Catchments).
The water originates from coastal creeks that form in the hills to the west and northwest of Rainbow Beach, Tin Can Bay, and Cooloola Cove. This water then flows both overland and underground, eventually reaching the wetlands and tidal estuarine areas of the Great Sandy Strait. Essentially, Rainbow Beach's water supply is sourced from the natural water cycle within the SEQ Catchments region.