This study provides a preliminary investigation of the home range and habitat selection of the Australian water rat (Hydromys chrysogaster) in Two Peoples Bay Nature Reserve near Albany, Western Australia. Six individuals were captured (trap success 1.9%) from 810 trap-nights. This low number suggests that the water rat population in Two Peoples Bay Nature Reserve is much smaller than anecdotal evidence would suggest. Home-range size (neighbour-linkage method) averaged 18.9ha (±11.6). Individuals preferentially utilised wetland habitats characterised by dense, low-lying vegetation (0-30cm from ground), low-density canopy cover and shallow, narrow water bodies. © 2013 Australian Mammal Society.