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Canal Flats sits one kilometer from the southern end of Columbia Lake, the source of the Columbia River that flows north to Kinbasket Lake before turning south to finally empty into the Pacific Ocean. Columbia Lake lies squeezed between two walls of rock; the Purcell Mountains to the west and the Rocky Mountains to the east. 

Canal Flats is the gateway to several back country provincial parks, including Whiteswan and Top of the World, and is an entrance to the Kootenay River Road.

Canal Flats is located just off Highway 93/95 at the southern end of Columbia Lake in the Kootenay River Valley.  Bighorn Estates is situated on Grainger Road, on the way to the beach.

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