[1][4] Boundaries for the locality were created on 31 October 1996 for the “long established name” which was derived from the cadastral unit of the Hundred of Caroline.

[11] Caroline is bounded in part on its north side by the Princes Highway and to the east by the border with Victoria.

[1] The principal land use in the locality is primary production which is almost exclusively concerned with forestry.

Five parcels of land within the locality have been proclaimed for conservation purposes as the Penambol Conservation Park and as the native forest reserves respectively known as Dry Creek, Honey Suckle, Laslett and Snow Gum.

[1][12][13][14][15] Caroline is located within the federal division of Barker, the state electoral district of Mount Gambier and the local government area of the District Council of Grant.