Climate change is irreversibly changing the water cycle, yet existing environmental flow assessment methods often fail to recognize the non-stationarity of hydro-climatic systems. Failure to do so will lead to the inability of environmental water management to achieve its ecological targets. Australia has undergone major reform over the past 12 years to recover water from consumptive use for environmental benefit and this paper examines how government agencies responsible for planning and delivery of environmental water establish ecological objectives, and whether there are any barriers to including climate adaptations. We used semi-structured interviews and an online survey of environmental water staff throughout Australia, focusing on southeast Australia, to gather information on methods and perceptions regarding these key issues. The results show water managers perceive current ecological objectives as unachievable and are frustrated by using outdated, government-recommended flow assessment methods. There are many general and industry-specific barriers to climate adaptation that are not insurmountable, yet the current lack of legislative and policy guidance provides little assistance on the best way to respond. We conclude that environmental water planning needs to more formally incorporate climate change considerations along with modelling approaches that can evaluate outcomes under a range of possible future hydro-climatic scenarios to ensure proactive decision making can occur. As the industry currently exists in Australia, it is ill prepared for the challenge of meeting legislated ecological targets under future climates.