The town is situated on the eastern side of a thin isthmus that connects the South Arm Peninsula to the mainland.

Along with nearby Seven Mile Beach, it is a popular residential area for people working in the Hobart CBD.

Walker Corporation had plans to build a large residential 'canal estate' in Ralphs Bay in front of Lauderdale.

[citation needed] He has close relations with Walker Corp.[citation needed] In June 2010, Ralphs Bay was saved when the Tasmanian Planning Commission rejected the proposed 'Lauderdale Quay' canal housing development.

On 10 March 1946 a Douglas DC-3 aircraft operated by Australian National Airways departed from Cambridge Aerodrome with a crew of 4 and 21 passengers for Essendon Airport.