Warragai Creek Nature Reserve is considered significant in conserving the Clarence Lowlands Spotted Gum Forest Ecosystem, an ecosystem that has been extensively cleared and is poorly conserved. It also contains the only reserved population in the Clarence Valley of the endangered weeping paperbark, and is a key component of an area containing a regionally significant population of koalas.
The New South Wales National Parks and Wildlife Act 1974 requires that a plan of management be prepared for each nature reserve. A plan of management is a legal document that outlines how an area will be managed in the years ahead.