Myall Lakes has experienced algal blooms in recent years which threaten water quality. Biomarkers, benthic fluxes measured with chambers, and pore water metabolites were used to identify the nature and reactivity of organic matter (OM) in the sediments of Bombah Broadwater (BB), and the processes controlling sediment-nutrient release into the overlying waters. The OM in the sediments was principally from algal sources although terrestrial OM was found near the Myall River. Terrestrial faecal matter was identified in muddy sediments and was probably sourced via runoff from farm lands. The reactive OM which released nutrients into the overlying waters was from diatoms, dinoflagellates and probably cyanobacteria. Microcystis filaments were observed in surface sediments. OM degradation rates varied between 5.3 and 47.1 mmol m -2 day -1 (64-565 mg m -2 day -1 ), were highest in the muddy sediments and sulphate reduction rates accounted for 20-40% of the OM degraded. Diatoms, being heavy sink rapidly, and are an important vector to transport catchment N and P to sites of denitrification and P-trapping in the sediments. Denitrification rates (mean *4 mmol N m -2 day -1 ), up to 7 mmol N m -2 day -1 (105 mg N m -2 day -1 ) were measured, and denitrification efficiencies were highest (mean = 86 ± 4%) in the sandy sediments (*20% of the area of BB), but lower in the muddy sediments (mean = 63 ± 15%). These differences probably result from higher OM loads and anaerobic respiration in muddy sediments. Most DIP ([70%) from OM degradation was not released into overlying waters but remained trapped in surface sediments. Biophysical (advective) processes were responsible for the measured metabolite (O 2 , CO 2 , DSi, DIN and DIP) fluxes across the sediment-water interface.