[2][4] The locality consists of land bounded to the west by the Adelaide River and to the north by the coastline of Van Diemen Gulf which includes the headland, Cape Hotham.

The locality was named after Cape Hotham which itself was named by Phillip Parker King in 1818 after the Royal Navy officer, Rear Admiral Sir Henry Hotham.

[8][2] The locality includes part of the Djukbinj National Park.

[9][10] Hotham includes the site of the first attempt by the Government of South Australia to create a settlement in the Northern Territory in 1864, which was listed on the Northern Territory Heritage Register on 12 January 2000 under the name of Escape Cliffs.

[11] The 2016 Australian census which was conducted in August 2016 reports that Hotham had no people living within its boundaries.