It is located 1.5 kilometres (0.93 mi) to the southwest of Port Chalmers in a wide valley on the shore of Mussel Bay, 13 kilometres (8.1 mi) to the northeast of Dunedin city centre.

The suburb, on the western shore of Otago Harbour, lies between the two rocky headlands of Port Chalmers in the east and Roseneath in the west.

The South Island Main Trunk rail line and State Highway 88 run along the shore of the bay.

The name of the suburb is indicative of the occupation of many of its early settlers; the Sawyers Bay area provided much of the timber used in the early construction industry around both Dunedin and Port Chalmers area.

Little remains of Sawyers Bay's early industries; it is now largely a residential suburb.

[3] Sawyers Bay's most prolific family is the McLachlan clan, whose tenement dates back to pre-European settlement.

Its current population base is now comprised by residents reliant on the marine environment and a large contingent of Firefighters[4] Sawyers Bay, which covers 2.29 km2 (0.88 sq mi),[1] is part of the Roseneath-Sawyers Bay statistical area.