The town is flanked by the Tungabhadra River to the east, Kanakagiri to the west, Sindhanur to the north, and Gangavathi to the south.

The encompassing territories are prone to flooding by waters from the left bank waterway of Tungabhadra Dam, which is administrated by Munirabad in Koppal locale, 70 km from Karatagi.

The park plans to have exclusive zones for modern rice mills, value-added by-products, common facilities, warehousing, packing, a quality control lab, knowledge resource centre, and transportation.

It is connected to major towns like Hubli, Gadag, Koppal, Ballari, Tumakuru and Bengaluru.

[5] A notable place of historic importance near Karatagi is Hampi, a UNESCO World Heritage Site, located 50 kilometres (31.1 mi) south of the town.

It includes the Virupaksha Temple, stone chariot, Anegundi, gurus' tombs at Nava Brindavana and many more.