Apalachia Dam is located nearly upstream from the mouth of the Hiwassee River, which flows northwestward through Northern Georgia and Western North Carolina before emptying into Chickamauga Lake in East Tennessee. The dam is situated near the center of a scenic and relatively isolated valley sliced by the river as it winds its way through the southwestern fringe of the Blue Ridge Mountains. The Unicoi Mountains rise to the north of the dam, and the Nantahala National Forest surrounds the dam and its reservoir on all sides.