The Village of Nakusp is located south of the mouth of Kuskanax Creek, on the Upper Arrow Lake in the West Kootenay region of southeastern British Columbia. Lying between the Selkirk and Monashee ranges, the village is known for its nearby hot springs and picturesque mountain lakeside setting.

The Arrow Lakes in British Columbia, Canada, divided into Upper Arrow Lake and Lower Arrow Lake, are widenings of the Columbia River. The lakes are situated between the Selkirk Mountains to the east and the Monashee Mountains to the west. Beachland is fairly rare, and is interspersed with rocky headlands and steep cliffs. Mountain sides are heavily forested, and rise sharply to elevations around 2,600 metres.