This paper presents recent results from an Industry-University-Defence collaborative project whose aim is to characterise the hydroacoustic environment of the Australian Maritime College Cavitation Tunnel. After summarising the operation of the tunnel, a methodology for measuring and processing the hydroacoustic measurements is presented that includes a technique for reducing the level of turbulent wall pressure fluctuations on the hydrophone measurement. The background noise levels of the tunnel are presented for a variety of operating conditions and they compare favourably with other hydroacoustic test faciltities internationally.