"Llanfair" is a typical Welsh place name - in English it translates as "church(yard) of St Mary".

The place name in the Welsh language is Llanfair Dyffryn Tefeidiad (the 2nd and 3rd words mean "Teme Valley").

Llanfair Waterdine is just off the B4355 road, 6 km (4 mi) northwest of Knighton and near the village of Knucklas, which has a railway station.

The village lies 7 km (4+1⁄2 mi) southwest of the small Shropshire town of Clun.

Also nearby is the small village of Lloyney (just on the other side of the Teme, in Wales).