The giant otter is restricted to tropical South America and depends on freshwater wetland systems. It favors slow-moving rivers, streams, lakes, and seasonally flooded forest, where banks are suitable for digging dens and where fish are abundant. The three core regions are the Amazon basin, the Orinoco basin, and the Pantanal, along with the river systems of the Guianas.
Its range spans much of the continent, including Brazil, Peru, Colombia, Venezuela, Bolivia, Ecuador, Guyana, Suriname, Paraguay, and French Guiana. That distribution is now fragmented. The species is considered extinct in Uruguay and Argentina, and its historical range across South America has contracted by as much as 80 percent. Clear water and stable riverbanks matter to the otters because they hunt largely by sight and shelter in bankside dens.