To the west, across Lake Champlain, it is bordered by the towns of Plattsburgh and Peru in Clinton County, New York.

To the east, across the eastern arm of Lake Champlain, is the town of Milton in Chittenden County, and to the south across the lake is the town of Colchester, also in Chittenden County, to which it is connected via the Island Line Trail (with a 200 foot gap that is serviced by a small ferry).

Of all households, 21.0% were made up of individuals, and 7.1% had someone living alone who was 65 years of age or older.

South Hero has a strong agricultural system that combines multi-generational farming operations with newer sustainable and organic ventures.

The local K–8 school (Folsom Elementary) also houses the town's community center and is a focal point for many events, from library-based learning and programs to school-sponsored plays and athletic events.

The town also hosts an annual marathon and half-marathon, which begins and ends in front of the school.