Oakridge lies in a small valley in the foothills of the Cascade Range and is completely surrounded by the Willamette National Forest. Five streams are located in and around Oakridge; they are Salmon Creek, Salt Creek, Hills Creek, and the Middle and North forks of the Willamette River, the latter of which has been designated Wild and Scenic. Diamond Peak, a shield volcano located in the nearby Diamond Peak Wilderness to the southeast, can be seen from various spots in and around Oakridge. Waldo Lake, known as one of the purest lakes in the world, and Salt Creek Falls, one of the largest waterfalls in Oregon, are located about east of town.