Under the Parks Victoria Act 1998, Parks Victoria's responsibilities are to provide services to the State and its agencies for the management of parks, reserves and other public land. With the approval of the Minister, it may also provide land management services to the owner of any other land used for public purposes. The Act requires that, in carrying out its functions, Parks Victoria must not act in a way that is not environmentally sound.

Overall arrangements regarding the relationships and responsibilities for the provision of services to the Department of Sustainability and Environment (DSE) are set down in a Management Services Agreement (MSA) between Parks Victoria, the Minister for Environment and the Secretary of the Department of Sustainability and Environment. Parks Victoria's management services are delivered within state policy, contractual agreements and the specific responsibilities and powers of the Secretary (DSE) under the National Parks Act 1975.

In addition to the Management Services Agreement, Parks Victoria provides management services to Yarra Bend Trust (for management of Yarra Bend Park) and Melbourne Water (for management of reservoir parks). Parks Victoria's responsibilities encompass the management of:

• all areas reserved under the National Parks Act 1975
• metropolitan waterways and adjacent land under the Water Industry Act 1994
• nominated Crown land reserved under the Crown Land (Reserves) Act 1978
• conservation reserves reserved under the Crown Land (Reserves) Act 1978 and managed in accordance with approved land use recommendations under the Land Conservation Act 1970
• areas reserved under the Heritage Rivers Act 1992
• planning for all Ramsar sites and management of some sites
• piers and jetties in Port Phillip Bay and Western Port and recreational boating on these Bays pursuant to powers conferred by the Marine Act, 1988 and the Port of Melbourne Authority Act 1958
• other areas as specified under the Parks Victoria Act 1998.