[4] Colchester borders Burlington, Vermont's most populous municipality and is part of its metropolitan area.

The town is directly to Burlington's north on the eastern shore of Lake Champlain, to the west of the Green Mountains.

The westernmost part of the town touches the New York state border in the middle of the lake.

To the northwest, across the eastern arm of the lake, lies the town of South Hero in Grand Isle County.

[10] Major employers in the town include the VNA of Chittenden & Grand Isle Counties, Saint Michael's College, Costco Wholesale Corporation, Green Mountain Power, Shaw's Supermarket, and Champlain Cable Corporation.

[12] There has been an annual "Lake Champlain International Father's Day Fishing Derby" (LCI) since 1981.

Niquette Bay State Park offers hiking and swimming in Lake Champlain.

Exit 17 connects to US 2, which goes west to the Champlain Islands, and also to US 7, which heads north toward the town of Milton.

[15] In the southeastern part of Colchester, and also along the US Route 7 corridor, bus service is provided by Green Mountain Transit.