Environmental management of minesites in general, and management of water discharges in particular, is receiving ever-increasing attention. One key component in the successful design and operation of water management systems is to address the presence of sediment in the water being conveyed. Sediment erosion in the mining environment is often greatly exacerbated by disturbing the ground surface of vast areas of catchment. If sediment avoidance, transport, deposition or release are not adequately addressed, the impact on water management facilities can include loss of storage and hydraulic capacity, more frequent equipment replacement, increased operational costs and potentially environmentally unacceptable sediment discharges to receiving waters. An overview of sediment management within water facilities is presented here, and design of one particular approach, the use of settling basins for sediment removal, is discussed in detail. Examples are used to illustrate lessons learnt where particular approaches to sediment management have been found to be lacking. The common themes in the lessons learnt include the need to characterise hydrodynamic conditions and sediment properties in the water source, to set performance targets for sediment management, and to develop operating procedures to meet these targets under a realistic range of scenarios. The examples show how analysis of expected performance of sediment management can help with planning of operation and maintenance strategies. For settling basins, use of a simulation model that includes the effects of turbulence on settling can provide considerable benefits in optimising basin design and evaluating performance. Even in the most basic approach to sediment settling, establishing performance targets based on design flow and sediment characteristics is critical.