Several dye trace studies have shown that the drainage basin of Harrison Spring is, by Indiana standards, very large.

Surface water that sinks into the sinkhole plain in areas near the intersection of Shiloh Road and Indiana State Road 135 south of Corydon has been observed to flow through known parts of Binkley's Cave, subterraneally under Indian Creek, exit to the surface at Harrison Spring, and flow to the Blue River.

The water from the spring overflows into an outlet that travels about 3⁄4 mile (1.2 km) before merging with Blue River as a tributary.

It was once part of a large 600-acre (2.4 km2) farm owned by United States President William Henry Harrison, from whom it gains its name.

The spring produced enough water to run a gristmill and sawmill downstream which began operating 1807, making it one of the first in the state.