The distribution and abundance of dictyoceratid sponges was surveyed to a depth of 20 m at eleven locations within the Palm Island Group, Great Barrier Reef (GBR), Australia. These surveys were related to prevailing hydrodynamic conditions to identify candidates and environmental conditions for sponge aquaculture. Locations were classified as sheltered, intermediate and exposed using quantitative wave exposure and current force models. The species richness of dictyoceratid sponges was high with ten taxa, but the abundance of most species was low with patchy distributions. Two species, Coscinoderma sp. and Rhopaloeides odorabile, were abundant, and detailed surveys of these species were conducted at seven locations representing common habitats within the Palm Island Group. Coscinoderma sp. was present at all locations and although abundances differed significantly across locations, this was not related to hydrodynamic conditions. In contrast, R. odorabile was only present at exposed locations with low abundance. The higher abundance and broad distribution of Coscinoderma sp. supports its selection as an aquaculture candidate. In contrast, R. odorabile was less abundant and was restricted to high-energy environments making aquaculture more problematic. The present study demonstrates the importance of ecological data in the decision-making process for new species aquaculture.