The town is located in the Colac Otway Shire local government area, 168 kilometres (104 mi) south west of the state capital, Melbourne.

"[2] The swamps were drained using bullock teams and hand labour to install large drains—the beginnings of the Tirrengower Drainage Scheme.

[2] In 1907, the area saw closer settlement with 60-acre (24 ha) blocks created and allocated mainly to young families.

[2] Swan Marsh today has four businesses: the post office, the general store/take away food outlet, a peat mine and a water carter.

[2] Community facilities include the football ground/recreation reserve, public hall, tennis courts and a speedway circuit.