Powell Butte, Oregon is a small unincorporated community located in the central part of the state. The climate in Powell Butte is characterized by warm summers and cool winters. Average temperatures range from the mid-80s (°F) in summer to the mid-30s (°F) in winter. The area receives around 12 inches of precipitation annually, with most rainfall occurring during the winter months.

Hydrologically, Powell Butte is situated in the Crooked River watershed. The region is known for its diverse geological formations, including volcanic remnants, lava flows, and ancient riverbeds. The aquifer underlying Powell Butte provides a vital source of water for both the local community and the surrounding agricultural areas.

Outdoor recreation opportunities abound in Powell Butte. The area offers numerous trails for hiking, mountain biking, and horseback riding, allowing visitors to explore the unique landscape and enjoy panoramic views. Additionally, Powell Butte Nature Park provides opportunities for bird watching, wildlife spotting, and picnicking. The nearby Prineville Reservoir offers fishing, boating, and camping activities, making the region a popular destination for outdoor enthusiasts.