Hamada is located in central Shimane, facing the Sea of Japan to the north and the Chugoku Mountains to the south.

Due to its location on the western seaboard of Japan, Hamada is relatively free from weather extremes such as typhoons or flooding.

During the Edo Period, the area was mostly under the control of Hamada Domain, which was ruled mostly by various branches of the Matsudaira clan under the Tokugawa shogunate.

On October 1, 2005, the towns of Asahi, Kanagi and Misumi, and the village of Yasaka (all from Naka District) were merged into Hamada.

Hamada has a mayor-council form of government with a directly elected mayor and a unicameral city council of 22 members.

In terms of national politics, the city is part of the Shimane 2nd district of the lower house of the Diet of Japan.