Wolfe City is a small town located in Hunt County, Texas. The climate in Wolfe City is considered humid subtropical, characterized by hot, humid summers and mild winters. Average temperatures range from the mid-90s°F (32°C) in summer to the mid-50s°F (12°C) in winter.

The hydrology constituents of Wolfe City are influenced by its proximity to the Sabine River. While the town does not have any major rivers running through it, it benefits from the Sabine River's water resources. The town also has several ponds and creeks that contribute to its hydrological makeup.

Outdoor recreation opportunities in Wolfe City include fishing, boating, and wildlife viewing. Many residents and visitors enjoy fishing in the numerous ponds and creeks in the area, where popular catches include bass, catfish, and crappie. Additionally, the nearby Lake Tawakoni offers more extensive recreational opportunities, including swimming, camping, and hiking. The town's surrounding natural beauty and water resources provide ample opportunities for outdoor enthusiasts to enjoy nature and engage in various recreational activities.