It is within the townland of Shannaghan,[1] just off the main route from Castlewellan to Banbridge, and 4.3 miles (7 km) north of Rathfriland.

The hamlet is named after Kate McKay, who was born in Ballyroney in 1691 and later went to live with her grandmother who is said to have owned the house where the workmen lodged when building the 18th-century bridge.

It is because of Kate's kindness the workmen named the bridge after her, and the hamlet became known as Katesbridge.

[2] Katesbridge is often noted in weather reports as the coldest location on the island of Ireland as well as within the United Kingdom.

This is due to its status as a 'frost hollow', a low-lying location relative to its surroundings which allows the colder air to settle.