The power station is located near the village of Kyarumba, in Kaghema parish, Kyarumba sub-county, in Kasese District, in the foothills of the Rwenzori Mountains. This about , by road, southwest of Kasese, the nearest large town and the location of the district headquarters. Nyamagasani II Power Station lies close to and immediately downstream of its sister station Nyamagasani I Hydroelectric Power Station, which is under simultaneously development, by the same developers. Nyamagasani 2 is located at an altitude of about .