The banded stilt is generally found in southern Australia. In Western Australia, it is found predominantly in the southwestern corner, though can be as far north as the saltworks in Port Hedland. Breeding took place at Lake Ballard in the Goldfields-Esperance after heavy rainfall from Cyclone Bobby in 1995, and then again after flooding in 2014. In 1933 a large colony had been recorded at Lake Grace, but had succumbed to attack presumably by foxes. The banded stilt has been recorded in southeastern South Australia, as well as the drainage of the Lake Eyre system, and in Victoria west of Port Phillip and the Wimmera. In July 2010 Lake Torrens filled with water, resulting in the influx of around 150,000 banded stilts. The Natimuk-Douglas Wetlands in western Victoria are an important nesting ground for the species, though lower numbers come here if there is flooding elsewhere in southeastern Australia. In New South Wales, it is most commonly found in the Riverina and western parts of the state, and has reached southern Queensland and the Northern Territory, where it has been found at the sewage ponds at Alice Springs and Erldunda. It has been recorded as a vagrant to Tasmania, with significant numbers recorded in 1981.