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The Town of Fountain Lake is located between Hot Springs and Hot Springs Village, Arkansas on Highway 5. According to the United States Census Bureau, the town has a total area of 3.5 square miles, all of which is land.

The community is named for a former estate on the southern edge of the area. The location is directly off of Highway 7N, across from Fountain Lake Center and can be identified by a large stucco entrance gate and a long tree-lined drive. The property contains remnants of a large home, barn, and other out-buildings. A small lake with an ornamental fountain are intact. The property is privately owned.

Ironically, the Fountain Lake Center, historical Fountain Lake estate, and Fountain Lake School are not actually in the town limits of Fountain Lake. The town limits include approximately 3 miles along Highway 5 and 2 miles along Highway 128. All other associated property outside these limits is part of Garland County, not the town of Fountain Lake.