The original townsite sat in an area that was later filled in by the creation of Grand Lake o' the Cherokees.

[7] The economy of Ketchum was based on agriculture until Pensacola Dam was built in 1937-1939, creating Grand Lake.

A group of private investors is funding the new airport which includes paving the former grass runway.

A portion of the town extends south into Mayes County and borders a small arm of Grand Lake.

Highway 85 leads northeast parallel to Grand Lake, 12 miles (19 km) to Bernice.

According to the United States Census Bureau, the town of Ketchum has a total area of 1.3 square miles (3.3 km2), all land.