Lying on the western border of Landkreis Kelheim, Neustadt is primarily known for the thermal spa Bad Gögging.
The city is located halfway between Ingolstadt and Regensburg, on an approximately 5 kilometres (3.1 mi) wide gravel plain of the Danube valley, which at this point is south of the wooded foothills of the tertiary Donau-Isar hill country of the Hallertau and bounded on the north by the limestone slope of the southern Franconian Alb.
The township includes 22 districts Arresting, Bad Gögging, Deisenhofen, Eining, Geibenstetten, Haderfleck, Heiligenstadt, Hienheim, Irnsing, Irnsing-Steinbruch, Karpfenstein, Lina, Marching, Mauern, Mulhouse, Niederulrain, Oberulrain, Schwaig, Sittling, Umbertshausen and Wöhr.
Neighboring communities of Neustadt are Abensberg, Altmannstein, Biburg, Kelheim, Mindelstetten, Münchsmünster, Pförring and Siegenburg.
With the town survey and the consequent new investment and resettlement Duke Ludwig II secured the Danube Valley road and the river crossing.