Bluewater Bay is situated approximately 15 kilometres (9,3 miles) north of the city of Port Elizabeth on the mouth of the Swartkops River.

Neighbouring suburbs include St Georges Strand to the north and Amsterdamhoek to the west.

Notable suburbs further away include Motherwell and Markman to the north, Deal Party to the south, Swartkops to the south-west and Coega to the north-east.

Bluewater Bay is served by the N2 City Shopping Centre, which is anchored by Superspar.

Bluewater Bay is mainly reached via the N2, a major freeway running between Grahamstown (now Makhanda) in the north-west and Port Elizabeth (now Gqeberha) in the south, with an interchange at the M2 Weinronk Way.