It extends from Satellite Channel in the north (separating Salt Spring Island from the Saanich Peninsula) to Squally Reach and Finlayson Arm in the south.

The inlet has been of importance as a fishery to the Malahat and Saanich First Nations for centuries, and many Indian reserves are situated on the shoreline.

For several years, a port existed on the western shore at Bamberton, servicing a cement works.

For most of the year the deep waters are anoxic, and hydrogen sulphide (H2S) is often detected near the bottom.

In the late summer and early fall, oxygenated waters from the Haro Strait and the Satellite Channel spill over into the deep basin of Saanich Inlet.