The Derwent River (or to use its correct title, the River Derwent) was discovered and named in 1793 by Lieutenant John Hayes, as part of a voyage of discovery for the British East India Company.

The river is almost 190 kilometres long, and it flows from its source in Lake St Clair, to the Tasman Sea at Storm Bay, near Hobart in the south east of the state. Major towns that lie along the course of the river include New Norfolk, Granton and Hobart itself. The source of the river was not actually discovered until 1835, when it was sighted by a member of Surveyor George Frankland's party. Prior to that time, there had been much speculation as to where the river began.

Extensive work has been done over the last 60 years to try and harness the power of the river, and subsequently there have been a number of hydro-electric power stations and dams erected along its course. There are three dams comprising the Lower Derwent Power Development Scheme, of which Meadowbank Dam is the lowest.

There are also six dams which make up the River Derwent Power Development. Additionally, there are many canals, pipelines and tunnels along the river.

The Derwent Estuary is a very popular recreational area, and it is most common to see a crowd of boats on the water in the warmer months. It is also the finish line for the famous Sydney To Hobart Yacht Race, which begins in Sydney Harbour on Boxing Day (26 December) each year, and which finishes in Hobart at the beginning of the new year.

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