Calderwood Dam is located approximately upstream from the mouth of the Little Tennessee River, which flows westward from North Carolina and empties into the Tennessee River. The area is surrounded by mountains on all sides, with the Great Smoky Mountains rising to the north and the Unicoi Mountains rising to the south. U.S. Route 129 runs roughly parallel to the Blount County side of the river, providing the only major road access to the Calderwood area.