The plant is found in subtropical regions extending into tropical areas in the northern end of its range. In Western Australia, it is found along creeks and streams in the Kimberley, Pilbara, Gascoyne, Mid West and Goldfields-Esperance regions where it grows in sandy-clay alluvium often around limestone. The species is also found in north western and south eastern South Australia, Victoria, Queensland, the Northern Territory and New South Wales. It will grow well in full sun to part shade in well-drained soils but can need watering in summer when cultivated. In Victoria, the species was once found in the Grampians and around Swan Hill but no specimens have been collected in 1913 and it is now possibly extinct in these areas.
Cyperus vaginatus is listed in the following regions:
North Queensland | South East South Australia
Places
Mount Isa, QLD