The park is located near the towns of Albion and Avilla and is 19 miles (31 km) northwest of the northeastern Indiana's major city, Fort Wayne.

Various local government officials, civic organizations, chambers of commerce and newspapers from communities across Northeastern Indiana—including Albion, Columbia City, Churubusco, Kendallville, and Fort Wayne—began to promote and support the park's establishment.

Indiana Governor Ralph F. Gates was an outspoken supporter of the effort to establish the park, continuing to promote the cause even after leaving office.

Located on the northeastern edge of the park, the facility comprises six buildings and has the capacity to house 140 adult male offenders, offering inmates educational and treatment programs.

[3] Starting in 2011, Chain O'Lakes State Park has served as the site of The HUFF 50K Trail Run and Relay, the twelfth largest ultramarathon in North America.