It is located in the River Chubut's lower valley (called Dyffryn Camwy in Welsh), about 15 kilometres (9 mi) west of Trelew.

The Gaiman Train Tunnel was built in 1914, when the railway extended to Las Plumas (Welsh: Dôl y Plu).

[1] The annual youth Eisteddfod, a Welsh cultural festival, is held every September.

The town's name originates in an indigenous Tehuelche place-name meaning "rocky point or whetstone.

"[3][1] Just 10 km (6 mi) to the south of Gaiman is the Bryn Gwyn Paleontological Park.