It borders Dixie Highway on the west and is south of Walton Blvd.

Loon Lake is located on the upper reaches of the Clinton River watershed.

The Clinton River exits to the southwest downstream of Loon Lake.

From Loon Lake, the Clinton River heads west toward the Drayton Plains State Fish Hatchery and then winds its way southward to Cass Lake.

In the 1960s, Loon Lake hosted annual hydroplane boat races.