Shui Hau Wan is a sheltered bay located in southern Lantau Island, and the intertidal area can reach 0.2 km² during low tide. The major habitat in the intertidal zone is mainly sand flat and it is also a breeding ground for Tachypleus tridentatus, a species of horseshoe crab. Facing the sea, mangrove and estuary are on the right where some migratory fish can be found such as eel. At the upper course, there are mainly abandoned farmland and shrubland. During rainy season, unceasing frog calls can be heard.

The government initially planned to designate Shui Hau as a Site of Special Scientific Interest, but the plan was later dropped. In the beginning of 2016, the Lantau Development Advisory Committee proposed numerous projects to develop tourism in Lantau Island, including water sports and animal farms in Shui Hau. Such proposals, if carried out, will inevitably cause substantial habitat destruction and human disturbances.