Canyon, Texas is a city located in the Panhandle region of Texas. The city experiences a semi-arid climate with hot summers and cold winters. The area is primarily flat with low hills and has a humid subtropical climate. The hydrology constituents of the area are primarily made up of the Palo Duro Creek Watershed, which is the primary source of water for the city. Outdoor recreation opportunities in Canyon include hiking, camping, and rock climbing in the nearby Palo Duro Canyon State Park, which is known as the "Grand Canyon of Texas." Other popular outdoor activities include fishing, hunting, and bird watching. The city also hosts an annual Fourth of July celebration called "The Canyon Fourth of July Celebration and Parade."