Wallace, Nebraska is a small town located in Lincoln County, in the western part of the state. It has a semi-arid climate with hot summers and cold winters. Summers are typically warm, with temperatures often exceeding 90°F (32°C), while winters are cold and often see temperatures drop below freezing. The town experiences low precipitation throughout the year, with most of it occurring during the summer months.

Hydrologically, Wallace is situated in an area with limited surface water resources. The region relies heavily on groundwater, with the Ogallala Aquifer being the main source. This aquifer plays a crucial role in supporting agriculture and other water needs in the area.

For outdoor recreation, Wallace offers various opportunities. The town is surrounded by scenic landscapes, including rolling plains and grasslands, making it a great destination for hiking and nature walks. The nearby Lake McConaughy is a popular spot for fishing, boating, and camping. Visitors can also explore the neighboring Crescent Lake National Wildlife Refuge, where they can observe a diverse range of wildlife species and enjoy birdwatching. Overall, Wallace provides a serene environment for outdoor enthusiasts to engage in recreational activities amidst the beautiful natural surroundings.