The town of Wanaka is situated at the southern end of Lake Wānaka, surrounded by mountains. To the southwest is the Crown Range and town of Queenstown (); to the north the Haast Pass cuts through the Southern Alps near Makarora. To the northeast are the towns of Omarama and Twizel. Very close to Lake Wānaka is Lake Hāwea, in a parallel glacial valley, which has a recently developed settlement of about 1,500 people. To the south of the town lies more of the Southern Alps. The Glendhu Bay motorpark is close to the town, leading into the Matukituki River valley which gives access to the Mount Aspiring National Park.