Hydrological alteration has contributed to the global decline of stream frogs. Flows support stream frog reproduction, juvenile development, food resources, and maintain habitats for all life stages. At present, there is a lack of information regarding the specific water requirements necessary for the conservation of stream frogs. To address this gap, we developed a traits‐based approach that serves as a valuable tool for grouping and prioritising water‐dependent stream frog species to inform future research priorities and environmental flow design. In this study, we focussed on 53 Australian frog species and analysed eight species traits to develop water‐dependent functional groups for stream frogs. We classified frogs based on their level of water dependency using an agglomerative hierarchical clustering analysis and a systematic review of water requirements and water management threats. The distinguishing traits that determined functional groups were: tadpole body type, egg clutch type, stream breeding habitat type, and documented association with flowing water and water permanence. Our study identified two distinct water‐dependent groups: facultative stream spawners, capable of reproducing in both stream and non‐stream habitats, and obligate stream spawners, restricted solely to stream habitats. Importantly, we highlight that the obligate stream spawners are the most sensitive group to within‐channel flow alteration and should be prioritised for water management decisions in lotic environments. This study represents the first comprehensive overview of the importance of hydrology for stream frogs and identifies the critical need for additional research and validation to enhance our understanding of stream frog responses to flows regimes.