The variability in the inherent optical properties along an estuary-coast-ocean continuum in tropical Australia has been studied. The study area, the Fitzroy Estuary and Keppel Bay system, is a shallow coastal environment (depth < 30 m) with highly turbid waters in the estuary and blue oceanic waters in the bay and subject to macrotides. Biogeochemical and inherent optical properties (IOPs) were sampled in the near-surface layer spatially and across the tidal phase during the dry season. These determinations included continuous measurements of spectral absorption, scattering and backscattering coefficients, together with discrete measurements of spectral absorption coefficients of phytoplankton, nonalgal particles and colored dissolved organic matter, and concentrations of phytoplankton pigments and suspended matter. Because of a large variability in the characteristics of the water components on short spatial and temporal scales, we observe a large variability in the associated optical properties. From the estuary to the bay, particle scattering and dissolved absorption decreased by 2 orders of magnitude, and nonalgal particle absorption decreased by 3 orders of magnitude. We also observed a strong variability in particle single scattering albedo and backscattering efficiency (by a factor of 6) and in specific IOPs (IOPs normalized by the relevant constituent concentration) such as suspended matter-specific particle scattering and chlorophyll-specific phytoplankton absorption. Superimposed on this strong spatial variability is the effect of the semidiurnal tide, which affects the spatial distribution of all measured properties. These results emphasize the need for spatially and temporally adjusted algorithms for remote sensing in complex coastal systems.