The new model claims to allow easy reading in direct sunlight due to its anti-glare E Ink display, which is said to approximate the print-on-paper experience.
The device also has something known as ComfortLight PRO that reduces the blue-light spectrum to avoid preventing people from sleeping well at night.
The new reader can store up to 6000 eBooks.
Michael Tamblyn, chief executive of Rakuten Kobo, said: “We know our most passionate readers are invariably looking for ways to expand their reading lives, and the new Kobo Aura H2O enables them to read anywhere and everywhere they go — to make the most out of every day.
"This device makes it possible to take your entire library with you, without having to choose which beloved story to take along; take them all and make the most of that much-needed ‘me’ time to enjoy your next great read.”
The new reader is available at JB HiFi, Myer and Angus & Robertson Bookworld (online) for A$239.95. In New Zealand, it will sell for NZ$309.