It lies, as its name suggests, on the River Wye, just downstream from the market town of Rhayader, and in the community of Llanyre.

Newbridge-on-Wye is located roughly in the middle of Wales, and lies 7.1 miles south of Rhayader.

The village's strategic position along the River Wye made it an ideal resting point for drovers, contributing to the establishment of a settlement that included numerous pubs.

In March 2008 Powys County Council announced that the second school was to be demolished, and a £2.5-million replacement to be built at the same site.

Although the initial plan was to renovate the old school the council concluded that it would be more cost effective to build an entirely new one, that will accommodate around 118 pupils and will acquire a lower environmental impact (purportedly a 40% reduced energy consumption).