Four depositional settings interpreted from sedimentary fades associations are present in the non‐marine Early Cretaceous sequence of the Otway Basin: high energy fluvial, low energy fluvial, lacustrine and fluvio‐deltaic facies associations. Organic‐petrological investigation of Otway Group coals delineated four coal types with distinct assemblages of maceral subgroups and individual macerals. The coal types, designated A to D, occur with distinct assemblages of dispersed organic matter (dom) in associated clastics. Specific coal type assemblages in the Otway Group are closely related to changes in sedimentary facies, depositional energy exerting a primary control on the organic facies. High energy deposits of the Pretty Hill Formation and the upper part of the Eumeralla Formation are characterized by a single organic facies. Organic facies in the lower energy lacustrine deposits of the Casterton Formation and the lower part of the Eumeralla Formation appear to be sensitive to subtle changes in environmental settings.