This report is one of four arising from the project ‘Comparative Evaluation of Environmental Flow Assessment Techniques' funded by Environment Australia, the Land and Water Resources Research and Development Corporation (LWRRDC) and the National Landcare Program. An introduction to the project is provided in the first report, Comparative Evaluation of Environmental Flow Assessment Techniques: Review of Methods (Arthington & Zalucki 1998a). This report is concerned with a best practice framework for environmental flow assessments in Australia. It attempts to rationalise the different approaches and holistic methodologies developed and/or applied in Australia and to suggest the most appropriate contexts for their use.