The Eocene succession filling palaeovalleys in the northeastern Eucla Basin, South Australia, is interpreted using facies and sequence-stratigraphic models based on relative sea-level changes. The dominantly fluvial sediments were deposited in incised valleys which graded basinwards to an estuarine coastal plain under warm and humid palaeoclimatic conditions. Sedimentological examination suggests a tidal influence in this fluvial succession. Fluvial–estuarine-shoreline facies associations can be recognised in these (Eocene) sequences, each of which comprises a diverse assemblage of lithofacies that can be grouped into lowstand and/or transgressive and highstand system tracts. Since the palaeorivers had hydrological connection with the sea, deposition was dominantly controlled by sea-level changes. Results of the study indicate that two third-order Eocene eustatic cycles have largely controlled sedimentation. The resulting key surfaces (unconformity, and transgressive, tidal/wave ravinement, and maximum flooding surfaces) bound depositional sequences which extend over significant areas and may be used in basin-wide correlations of stratal packages.