Located in the southern part of the county, it borders the following townships: Part of the village of Gnadenhutten is located in eastern Clay Township.

Clay Township contains the unincorporated locale of Lock Seventeen.,[4] named for its location at the seventeenth lock of the Ohio Canal.

[6] The township is governed by a three-member board of trustees, who are elected in November of odd-numbered years to a four-year term beginning on the following January 1.

There is also an elected township fiscal officer, who serves a four-year term beginning on April 1 of the year after the election, which is held in November of the year before the presidential election.

The current trustees are Ruby Kinsey, Harvey Morrison, and Tom Morrison, and the fiscal officer is Sharon Miller.