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According to the 2010 census, Hamilton has a total area of 3.15 square miles (8.16 km 2 ), of which 2.39 square miles (6.19 km 2 ) (or 75.87%) is land and 0.76 square miles (1.97 km 2 ) (or 24.13%) is water.
The town is served by Indiana Highway 1, Indiana Highway 427, and Bellfountain Road, which connects to Old US 27 in Pleasant Lake. The town is mainly a resort town that sees an influx of vacationers known colloquially as "lakers" during the summer months. The town is served by the Hamilton Police Department and the Hamilton Volunteer Fire Department.The main feature of the town is its namesake lake which the town was built around. A few years ago, the Flegal Brothers Gravel Pit, located on the Northwest end of the lake, was shut down and sold. After getting the go-ahead from state and federal officials, the closed pits were allowed to flood and then the portion of land separating the old gravel pit from the lake was removed and the newly created additions to the lake were named Crystal Bay and Crystal Cove and were sold off to a developer for the construction of new homes.